I estimated the house construction demand system by structural type, and then used its results to simulate the effect of the possible carbon tax introduction to Japan on wooden house construction demand. A demand system was specified as the linear approximation of Almost Ideal Demand System (LA/AIDS), which was estimated for each of 42 prefectures separately using the 24 year long time-series data from the Statistics of Construction Undertaken. The results suggested that for most prefectures the demand for wooden house construction was price inelastic and its expenditure elasticity was very close to 1. Then I used the estimation results to simulate the effect of carbon tax. 3-30 thousands Yen per carbon ton of the tax as of 1997 was assumed in the simulation. Although it was found that the effect on wooden house construction depended on the amount of the households' adjustment of the total expenditure on house construction when facing the introduction of carbon tax, the estimated effects were generally small regardless of the amount of the adjustment.