Can you make insulation from newspaper?

You buy the insulation and rent the machine that blows it into the wall areas. It is loud and messy to do, but the insulation properties seem to be good.

Another method of making blown-in newspaper insulation is to use a crosscut shredder to turn newspaper and other paper goods into small chunks of newspaper. Seal the space between the studs with 3-mil (or thicker) poly film, and fill the space with your shredded newspaper. The R-value will not be as good as blown-in cellulose insulation (typically $5-6 per 40-sq ft x 6.25" coverage), but the materials are essentially free.

As with all insulation, be sure to ensure that it stays dry. Be aware also that cellulose insulation has flame-retardant and mildew-retardant chemicals applied, while shredded newspaper (which you presumably made yourself) does not.