Accounting system for regional forest-resources is developed as a tool to evaluate material flow of woods and timbers. The system combines physical resource flow with socio-economical values of the regional scale which consists of several sub-basins and urban areas. Policy options to promote the utilization of domestic forest timbers rather than imported ones are planned, as well as alternative options to reuse wasted wood products from urban areas. Environmental impacts of policy options are estimated for life cycle CO2, the amount of wastes, and direct costs. According to evaluation for Yodo River Basin Region, both economic costs and CO2 are decreased by the recycle use of wasted woods into particle boards.