By using an endogenous growth model with environmental externality, this paper tries to discuss the relationship between packaging waste and economic growth. We show that the role of labor supply plays an important role in determining the relationship between packaging waste and economic growth. We find, for economic growth, the packaging tax is not a good alternative. The better way is to increase the public awareness of environmental consciousness or green consumption belief through the government policy announcing, and propel the public change their consumption behaviors. Therefore, the resource from packaging waste can redistribute to other sectors and conducive to the economic growth with the achievement of double dividends (that is environmental conservation and economic growth). Finally, we also discuss the optimal policy.