The purpose of this study is building a Japanese circulation model between the wooden house and forest resources. Japanese circulation model satisfies the following condition. 1. The supply and demand of wood for housing circulate in domestic area. 2. CO_2 emission from housing is all fixed by domestic forest. By building the model, we make it clear the way of building the wooden house to reduce CO_2 emission. And this study shows the possibility of perfect circulation by Re-use the wood and promoting the use for biomass energy system.