At a time when record executives search for anything that can breathe life into the music industry, an unlikely question faces artists and record labels — paper or plastic?

Made from recycled paper and a plastic tray glued into a paperboard frame, the digipack is a CD-packaging format popping up everywhere.

Nine Inch Nails, Pearl Jam, 311, Indigo Girls, Tori Amos and Guided By Voices are just a few artists who have released CDs in the past few months in the digipack format.

Tuesday alone marked the release date of prominent CDs by Stone Temple Pilots, Bush and Rob Zombie — all of which came out as digipacks.

Disc Makers is a New Jersey-based company that works with artists on the production of compact discs, dealing with everything from packaging to cover art.

Tony Van Veen, Disc Makers vice president of sales and marketing, sees high potential for the digipack format because of its strong appeal.

“The digipack allows you the ability to do some really creative things in terms of the design of CD packaging, artwork on the panels, different kinds of varnish,” Van Veen says. “It allows the artist to express unique creativity that they can’t with a jewel box. It’s good for up-and-coming artists. It makes them look good and helps establish an identity.”

While artists like Pearl Jam and Nine Inch Nails have been using the format for years, it hasn’t been until recently that the digipack gained widespread frequency. Pearl Jam has been releasing all of their albums in the digipack format since 1994’s “Vitology.”

“It’s a nice package,” Van Veen says. “It uses less plastic and allows for full graphic panels on the outside and inside. It looks and feels like a premium pack.”

Environmental issues provide another incentive for artists and labels to switch to the digipack.

One compilation, “Music for Our Mother Ocean,” uses its profits to benefit the Surfrider Foundation, an organization dedicated to protecting and preserving the world’s oceans, waves and beaches.

Pierce Flynn produced all three “MOM” compilations and is vice president of marketing for Surf Dog Records.

He likes the digipack because it’s an ecologically sound package made out of recycled material.

“I think it’s an influence of a number of things: environmental, the feel of it is right, it’s more tactile,” Flynn says. “It brings back the feeling of having an old LP — it’s really tangible.

“It costs extra money, but we say it’s worth it.”

He says digipacks can cost as much as 10 cents extra per CD, which comes out to a lot when printing mass quantities.

“It’s enough to make the record companies squeal a little bit,” Flynn explains.

But the cost isn’t too high when considering the impact it can have on the environment.

“Digipack uses less plastic from the manufacturing perspective,” Van Veen adds. “It’s bringing less plastic into the marketplace,” and that’s more environment friendly.

“The digipack for independent artists has only recently become affordable,” Van Veen explains. “As far as major labels are concerned, with orders in larger quantities they can be — in some cases — economical.”

When any trend arises, there will always be critics.

Charlie Stewart, manager of Peeples Music in Campustown, is not a big supporter of the format.

“What I don’t like about the digipack is that if the part that holds the CD in loses its teeth, it won’t hold the disc anymore and can’t be replaced,” he says. “Most customers like them less because they seem to wear and tear more than plastic jewel cases.”

In his own collection, Stewart says, he’s had digipacks for 10 years that have shown almost no signs of ware. He suggests handling digipacks more gingerly and taking better care of them.

Stewart also doubts the environmental consciousness of digipacks.

“I debate the decision of whether using that little of plastic makes that much of a difference,” Stewart says. “If they really want to worry about environmental problems, they shouldn’t wrap the CD initially in so much plastic.”

Environmentally friendly or not, there’s no doubt that digipacks are hot, and with fall release schedules in full effect, it’s obvious we’ll be seeing more of them in the future.

“I don’t think the digipack is a fad,” Van Veen says. “It’s steadily yet gradually increasing in acceptance in the market. It’s not the type of thing that blows up quickly and explodes again. It’s had a nice, steady ride, it’s attractive ,and it’s gonna continue to rise.”

Still, packaging format may not be the priority on the minds of the music buying public when it comes to established artists.

“If the next Metallica album were to come out in a paper bag, people would buy it,” Van Veen says.