I agree with Bruce. If it's about cheap and sustainable, I'd go with really, really good insulation, strategic shade, capturing heat in the winter, etc. In a space that small, if well insulated, you can heat it quite cheaply with electric, particularly if it's one big, open area. You could even explore solar power for heating that size of space...not cheap initially, but more sustainable than depending on the grid.
Remember to have a ceiling fan on low that can direct the heat downward as it rises, pedestal fans that can circulate the heat into other rooms if needed and utilize fans for cooling the house as well.
We don't use AC here, though last year we finally broke down and got a small window unit for Mom's room as her room doesn't get good airflow. We only turned it on for a bit in August, though. Most of the summer is fans, lowering the shades before the sun hits that side of the house, keeping the windows closed from midmorning to evening, using fans to circulate air, etc.
Wood is cheapest for us but not sure how cheap it is were you reside. If you could give us some idea on the price of such things and utilities where you live, we could maybe give a more informed answer.