you can compost paper, but a lot of it is treated and doesn't decompose very well. E.g. we have a compost heap in our building's garden and someone keeps putting bits of paper bags there, which last years unless you proactively go and try to break them up.

Also, wouldn't composting it release as much carbon as putting it in landfill? And landfills are bad in many ways.

Recycling it seems a better idea.