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In the solid waste management context, economic instruments (EI) refer to a set of tools that makes use of monetary incentives and deterrents in addition to market measures in order to influence waste management behaviour. In short, they provide a country with the means to control the generation and disposal of solid wastes. They can also be voluntary and based on Memoranda of Understanding (MOUs), or can be introduced through regulations.

Plastics have been an integral part of our lives for several decades in the form of convenient and useful commodity items. Plastic products are usually inert, chemically stable, resistant to corrosion, water-proof, durable and light-weight. Ironically, the same features which make them ideal as a raw material for such a wide range of products are also responsible for the environmental problems cited by many environmentalists. Furthermore, the fact that conventional plastics are derived from fossil fuels and are also responsible for greenhouse gas emissions during their manufacture is often a sore point. In particular, the plastic bag has in recent times come under attack for its prolific presence in the environment, and its impact on said environment.