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- Reducing paper use does more than save trees. Pulp and paper mills are also a major source of pollution. They release into the air harmful gases and particulates, which contribute to global warming, smog, acid rain, and respiratory problems. In addition, bleaching paper with chlorine can produce dioxin, which is known to cause cancer. Paper mills also produce large amounts of solid waste and require a lot of water. The industry is trying to clean up, but anyone who’s driven past a paper mill has smelled the challenge.