Duraflame logs and other manufactured logs are probably better for the environment than burning cord wood. They are made of things like recycled sawdust, plant wax, ground nut hulls and the like. Because they are made from recycled materials they are carbon neutral. The manufactured logs also give off less other pollutants than cord wood but give off more pollution than natural gas (which of course is a fossil fuel and therefore not carbon neutral). Burning wood or even manufactured logs for heath however is a very inefficient method of heating a home and therefore could be more wasteful than a gas or electric heater.
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