Like many here have stated, it is more of a waste issue than being frugal.
When the yard debris recycling back in the Bay Area (near San Jose) included soiled paper products, that further reduced our wastage. Used paper towels, napkins, plates, pizza boxes, along with food scraps, could be included in the yard debris bin for collection. Any extra napkins and paper plates were saved and added to the yard debris bin once used.
The incentive to do so was readily apparent to us. The generated compost from this material could be picked up by homeowners, as well as being used in public landscapes maintained by the city and county. You hear all of the stories about the recycled collection being dumped into regular trash areas. This was a case where we knew some/all of our yard debris recycling was actually recycled.
It pains me, now that we're in Texas, to not have an option for this type of recycling. I guess I could try a compost pile, but I suspect the HOA here would bark about that. Or the neighbors from the resulting wildlife attraction.