I would count wood chips as am industrial product
It is a good point. However, woodchips are a biproduct or waste product from local industry, and making use of them makes sense to me, especially if they can be attained for free, and super especially if they can be delivered for free (as most arborist companies have to pay to dispose of them). In comparison, steel for wire mesh, or plastics usually made from petroleum products, are extremely resource intensive large environmental footprint industries.
Forest duff would be another option for use as an insulative material, but this is not necessarily sustainable either... but is it more sustainable than fiberglass pink, or styrofoam?
the R value for dry sand vs. dry wood chips
I would suspect that wood chips would be much better for insulation than dry sand.
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