This paper argues that the American newsprint recycling laws passed during the late 1980s and early 1990s not only failed to achieve their stated environmental objectives, but failed so spectacularly that they actually contributed to further environmental harm. These laws, which imposed a recycled content standard on new newsprint production, had three intentions: to decrease landfill space requirements, to preserve forests, and to encourage the recycling of used newsprint. Insofar as the first two intentions are concerned, this paper finds that the American newsprint recycling laws had a negligible effect on both landfill space and forest conservation. But by succeeding in elevating the amount of newsprint recycling far beyond what it would otherwise be, industry compliance with these laws may have actually increased environmental harm. From a Canadian perspective, these laws essentially encouraged Canadian newsprint producers to import American newsprint waste. In addition, by imposing compliance costs on American and Canadian newsprint producers in the range of several billions of dollars, these laws prevented capital from being productively spent on other environmental initiatives. Surveying alternatives to government mandated recycling legislation, this paper ends by concluding that if governments wish to improve environmental outcomes through newsprint recycling, their best option may be to extend the functioning of markets.