Economic Impacts of Increases in Domestic Timber Utilization in Wooden Framework for Residential Construction

This study aimed to evaluate the economic impacts of increasing the ratio of domestic timber used in wooden framework for residential construction. We performed two assessments: a simulation in which the ratio of domestic timber utilization in Japanese wooden framework residential industry is increased by 1% above the actual ratio, and a case analysis of the leading housing company, T Home. The findings showed that increasing the ratio of domestic timber not only had an overall economic effect but also affected the earnings of the housing manufacturer in some cases. On the other hand, in the simulation, induced production increased by 4.49 billion yen and the gross value added increased by 2.10 billion yen if the ratio of domestic timber utilization in the Japanese wooden-framework residential construction industry increased by 1% above the actual ratio of 2018. The results of the simulation and the case analysis proved that the economic impact on the forest products industry is larger when wood products are processed in Japan, even if they originate from a foreign country and the economic impact on forestry is larger when lumber rather than either plywood or laminated timber is used.