We calculated the difference between the amount of fixed carbon and the carbon emissions in order to calculate the carbon balance of local wood used in the construction of houses. The target tree species were the Japanese cedar which grows in Northern Nagano and the Japanese larch which grows in Eastern Nagano. We researched and calculated the percentage of wood that was wasted in the forest and the lumber mill. We measured the energy used at these two locations and at the log market. We also calculated the CO
2 emission from energy consumption at these three locations, and during the transportation of the wood. In addition, we researched the volume of by-products from the lumber mill, according to their application. The following results were obtained. The Carbon Balance of the Japanese cedar was 475kg-CO
2/m
3, the Japanese larch (using biomass for artificial drying) was 728 kg-CO
2/m
3, the Japanese larch (using fossil fuel for artificial drying) was 788 kg-CO
2/m
3, respectively.
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