China's paper industry development is rapid, but the recycling rate of China's waste paper has been low all the time. Meanwhile, material flow analysis can help determine the flow of waste paper, and life cycle assessment (LCA) is the methodological framework for quantifying greenhouse gas emissions. Therefore, present study integrates these two methods into the model construction of China's waste paper recycling decision system. Present study constructs a benchmark model of China's waste paper recycling decision system in 2017, focusing on the impact of nonstandard waste paper recycling on the economic and environmental benefits of China's domestic waste paper recycling system. This model construction is followed by sensitivity analysis of the relevant parameters affecting the efficiency of the waste paper recycling system. Finally, present study forecasts the system's economic benefits and greenhouse gas (GHG) emissions in the context of integrating and regulating nonstandard recycling vendors. The results show that the economic benefit of China's waste paper recycling in 2017 is approximately 458.3 yuan/t and that the GHG emissions are 901.1 kgCOeq. The standard recovery rate and nonstandard recovery acceptance rate will both have a significant impact on the system's economic benefits and improve the GHG emissions structure. In the context of integrating nonstandard recycling enterprises and individual recycling vendors, the economic benefits will rise to 3312.5 yuan/t in 2030, while GHG emissions will rise to 942.9 kgCOeq. Present study can play a certain guiding role for policy makers in formulating waste paper recycling industry specifications and formulating relevant policies.