Rising prices provide incentives to develop less expensive resources. Some believe that our ingenuity and technology will enable us to develop substitutes for existing resources as they become more expensive. They might be. Made from trees that can be regrown. Harvesting trees can mean a loss of habitat for some species and create air and water pollution.
Paper factories can pollute the air and water.
Fossil fuels used for harvest and transport raw materials and final products. Electricity, potentially from burning coal or oil, used to manufacture. A few times, although it's not particularly durable. High-quality paper bags can be used many times. Made from fossil fuels.