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While other types of insulation are made to resist or impede the flow of warm air, reflective foil insulation reflects back infra-red energy from the sun so it does not penetrate the building. It can also reflect back radiant heat inside the house so it does not escape. Reflective insulation is commonly made of two layers of aluminum foil sheeting with foam or plastic bubbles in between creating an air space to also resist convective heat transfer. The aluminum foil component in reflective insulation will reduce radiant heat transfer by as much as 97%.
Prodex Foil-Foam-Foil R-15.67 details Reflective Insulation

Click here for a comprehensive article on the Physics of Foil.
Radiant barrier
All new buildings should incorporate a radiant barrier as part of the insulation system. The concept is simple: each unit of radiant heat energy that is reflected away from your building in summer, and each unit reflected back in during winter, means less operation of your heating and air conditioning systems, less wear and tear on your equipment, and less money you pay in utility costs. Use either a foil radiant barrier or reflective insulation. Radiant barriers (aluminum foil with no center layer) become reflective insulation because they face an air space like an attic, wall cavity or crawlspace. Radiant barriers primarily impede the downward flow of radiation. The largest benefit of using a radiant barrier is reduced air-conditioning costs in warm climates.
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Vapor barrier
A vapor barrier (or more accurately, vapor diffusion retarder) is an essential part of the moisture control strategy for a home. The primary purpose of a vapor barrier is to keep moisture from getting inside your walls. Condensation within the walls can cause wood rot, mold, mildew and fungus growth. A vapor barrier acts as a physical shield to repel moisture. In addition to its properties as a radiant barrier, reflective insulation can be used as a vapor barrier. When properly installed, waterproof reflective insulation can reduce or eliminate condensation. As reflective insulation is non-absorbent, it will not mildew or promote fungus growth.
In colder climates, a vapor barrier should be placed on the interior or warm side of the wall. The US Department of Energy map below shows that in some southern climates, the vapor barrier should be omitted, while in hot and humid climates, such as along the Gulf coast and in Florida, the vapor barrier should be placed on the exterior of the wall.

Source: Wall Insulation, US Department Of Energy DOE/GO-102000-0772 October 2000.
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Air infiltration barrier
Air sealing and moisture control make a building more comfortable inside and save energy by making insulation more effective. A significant amount of moisture enters walls through air leaks and capillary action from the ground below. Installation of house wrap will prevent moisture from penetrating from the outside.
When properly installed, reflective insulation will act as an air infiltration barrier thereby sealing the wall to reduce heat loss from expanding warm air and prevent water vapor in the air from entering the wall cavity. The US Department of Energy estimates that in a 100-squarefoot wall, one cup of water can diffuse through drywall without a vapor barrier in a year, but 50 cups can enter through a ½-inch, round hole. Sealing air leaks is estimated at 10 to 100 times more important than installing a vapor barrier.
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