Host: The Japanese Forestry Society
The demand system for house construction by structure type was estimated to investigate the dependence of wooden house construction demand on prices by structure type and the expenditure on house construction. For each of 46 prefectures in Japan, I estimated LA/AIDS with 24 years time-series data. Compensated own price elasticity of wooden house construction demand was -0.28 on average, and the expenditure elasticity was 1.02. Other price elasticity estimates are generally small to show that demands are inelastic. In a simulation that assumed 3 to 30 thousands yen per carbon ton of carbon tax as of 1997, the impact of tax introduction on wooden house construction demand was observed small, and it was considered that the size of the impact depended significantly on the size of adjustment occurred in total expenditure on house construction.
