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As compared to other economical insulation options, cellulose provides good thermal performance with an R-value of 3.8 per inch. Cellulose insulation has received the highest fire safety rating (class 1), and can easily fit around items in your walls like pipes and wiring. Cellulose insulation is most often used in the cavities of walls and roofs to insulate, reduce noise, draught proof, and even provide added control against mold.
Everything conducts heat, but some materials are very good conductors and some are poor conductors. Insulation is made of materials that are poor conductors. The best insulation is air, because it is a gas and gases are much poorer conductors than solids and liquids. Also they are lighter, and light weight is always desirable for insulation. The problem with air is it moves around too much.