Yes, paper clay is biodegradable.
The Composition and Nature of Paper Clay
Paper clay is created by combining regular clay with paper pulp. The paper used to make the pulp is often sourced from leftover scraps, making paper clay a more sustainable and environmentally conscious alternative to some other modeling materials.
Biodegradability of Paper Clay
Due to its composition from natural materials, paper clay is inherently biodegradable. As highlighted in the reference, Paper Clay is also "non-toxic and biodegradable!". This means that under appropriate conditions, it can naturally decompose back into the environment over time.
This characteristic makes it an attractive option for various crafts and art projects, especially when considering environmental impact.