Hmmm, interesting. According to Wikipedia, paper cups are not as good an option as one would think. Very little recycled paper is used to make paper cups because of contamination concerns and regulations. Because most paper cups are coated with plastic, both composting and recycling of paper cups is uncommon. There is a push to make the cups more recyclable and Starbucks is at the forefront of an initiative in Seattle to collect spent cups for recycling, which is also happening in Canada.
Recycled paper in general uses 30-50% less energy to produce, and when all the costs are considered, is less expensive than virgin paper.
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