Economic ripple effect analysis of using wood grown in Oita Prefecture, Japan, to build conventional wooden houses

Abstract

The economic ripple effects of building detached wooden houses using locally sourced wood from Oita Prefecture, Japan, were quantified by an input–output analysis for this evaluation target scenario. In addition, Comparative Scenario 1 (construction using general distribution wood), Comparative Scenario 2 (construction using reinforced concrete), and Comparative Scenario 3 (construction using steel frames) were set for houses built using other construction methods and compared with the evaluation target scenario. The results are as follows. (1) In the evaluation target scenario, production induced a value of 1.65 times the final demand and the gross value added induced a value of 0.79 times the final demand in the prefecture. (2) The sum of the primary indirect effect and the secondary indirect effect of the production-induced value of the evaluated scenarios decreased in the order of wood products, commercial, real estate, transportation, and forestry sectors, thus revealing the impact of the forestry and wood industries on the prefecture. (3) Among all of the scenarios, the production-induced value and gross value added of Comparative Scenario 1 were the lowest. The low self-sufficiency rate in the wood products sector in the prefecture was a causative factor for this result.