I would recommend any except thin paper it makes the plane wobble and it won't fly straight and crash onto the ground.
white.
the best type is A4
Paper(s) made from recycled fibers are as good as paper made from virgin (non-recycled or secondary) fiber. One is not better than the other.
Shredded paper is/can be recycled to make paper. Most of the shredded paper is baled and shipped to paper recycling plant.