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Radiant barriers

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We've settled on what our new house will be at our homestead, and it's going to be a 20x20 Amish built wooden cabin, with a 5/12 pitch, and a separate 8x8 building attached to the back to hold the shower and composter.  The only problem is, they come uninsulated, so we're going to have to do that ourselves.  I have no intention of using fiberglass, so I need to find something that doesn't cost an arm and a leg, is non-toxic, and is reasonably easy to install.  I stumbled upon cotton and wool insulation rolls that I think would work great for us, but they're super pricey.  I was think of getting the rolls in a slightly lower R-value to lower our cost, and installing a radiant barrier to bring the R-value back up again.  I have to run the numbers (will be doing so tonight) but I'm pretty sure that's going to be a less expensive (though slightly more labor intensive) process. 

The problem is, I'm slightly confused about *how* to install it.  We're going to leave the roof space open - no attic or crawl space, just an open ceiling - so the insulation will be installed flat against the walls with wood planks covering and acting as interior walls.  I know with faced batting you're supposed to install the it with the facing turned towards the living space.  All the information I can find about radiant barriers online says to put it in the other way around - a tiny bit of air space, then the radiant barrier, then the insulation.  Which is correct? 

I have never even considered insulation before, so this is all new to me.  If anything I have written doesn't make sense, let me know and I will try to clarify.
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