Yes paper bags are widely and easily recyclable if they are free of grease, food residue and other contaminants. Paper bags with plastic windows or plastic lining are likely NOT recyclable. In America, more paper is reclaimed for recycling than all other materials combined (excluding steel) due to supply, demand for recycled paper and wide spread accessibility. About 37% of raw materials used by paper mills in the US is recycled or recovered according to the EPA.