While having a paper trail is not necessarily environmentally friendly, it is, however, better noted. I personally like to keep the receipts of the bills I have paid as proof that it was taken care of. Computers, as advanced as they are now days, still have flaws and errors do occur and information can be lost. Whereas when you have a paper trail you can file them in a safe place.
I think that electronic preservation of information is better than having a paper trail, because the electronic documents are so much easier to look through. The preservation of information is not helpful if we do not have a meaningful way to look through the documents for evidence later on. E-records are more practical.
Information retrieval is much easier electronically than going through tons of paper files. Electronic information takes up a lot less space. I think preserving information electronically is marginally safer than having a paper trail laying around when it comes to the possibility of identity theft. Neither system is really all that safe from thieves.
Obviously electronic preservation of information is far better than preservation on paper. Electronic preservation makes the information and documents available to many more people. I think it is important to use both formats however, simply because there is a chance of loss with electronic preservation. We wouldn't want to loose vast amounts of information to a grid failure or a breech of the system.