You don't need to pick and chose good vs bad uses. If their are no alternatives then a small price increase is not a big deal. The most effective policy is one applied evenly that let's the market adjust to externalities.
So really oil should be taxed directly, then you tax plastics above and beyond that as needed. But, you never want to apply discounts for some specific use.
So really oil should be taxed directly, then you tax plastics above and beyond that as needed. But, you never want to apply discounts for some specific use.