I prefer single-use paper. I put my recycleable materials into the paper bags, then toss that into the (single-stream) recycling dumpster - the paper is recycleable after all (and is often made of recycled paper).

Back when we went to the recycling facility in person, we would pre-sort and still use the paper bags.

I suspect, when used this way, paper beats plastic, environment wise (of course, there are better alternatives, like personal canvas bags, but that's another story).