Recycling paper saves large amounts of energy and water. Recycled paper requires less energy than making paper from virgin wood pulp, and can save many trees. For example, the average American uses approximately one 100 foot tall Douglass fir tree in paper and wood products each year [EPA]. As with plastics, paper can be incinerated but recycling saves more energy than can be recovered in a waste-to-energy plant.
The U.S. E.P.A. has a thorough website on paper and paper recycling. Click here to be redirected to it.