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I wish I could build a menacing lair using only spit and wood pulp.
Have you tried?
Drywall is pretty much the same, so yes, you can, and the typical US McMasion is pretty menacing in its environmental impact (and looks shit as well).
Wait what's wrong with it in terms of is environmental impact?
Badly insulated and huge open spaces that waste a lot of power if heated or cooled. In addition the entire concept of car dependent suburbs and sprawling development into the country side is an environmental disaster all on its own.
Oh sorry I thought you were saying drywall was what was bad for the environment, and that was why I was confused.