Many people think that paper bags are a better option than plastic bags and they very well could be. It is interesting to note that plastic bags were originally promoted as more environmentally friendly than paper bags because producing them did not require cutting down forests.
It is clear that all alternatives have positive and negative aspects. It seems like durable, washable, repairable and reusable bags would be the best option. They could be made out of a natural fiber like cotton, linen or even hemp. Bags could even be created out of old clothing which is also becoming a huge waste problem.