Subsidies seem like the wrong approach, in that they require copious extra administration and are subject to abuse. Some economics theorists argue for securitizing externalities in some fashion, but I think the market for shipping recyclables to China is a good example of how this too can break down. I don't have a definite solution but I like the idea of disallowing deduction of all costs for tax purposes where they're a large increase in post-consumer waste, on the grounds that it's simpler to address the problem at source rather than in the large. I had to install some new light bulbs yesterday and I swear there's as much plastic in the containers they came in as in the ballast of the bulb itself.