Only white paper is recyclable. Just about any type of paper is technically recyclable, including envelopes, post-it notes, colored paper, newspaper, and magazines. However, different recycling companies require different mixes and restrictions. Make sure to check with your recycling program to find what is recyclable in your program. Incineration is safe these days and you can burn it for the electricity.
Incineration still produces emission into the air including air pollutants and greenhouse gasses.
While it is true that some incinerators also produce electricity, it is not without impact. Recycling the material, or reusing or reducing its use, will save electricity and is a much more efficient way of handling the material. It's OK to throw something away as long as it's biodegradable. Biodegradable waste breaks down into methane in the landfill, if at all. It is usually released into the atmosphere, where it is a potent greenhouse gas.