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== In the circular economy == The lumber industry creates a lot of waste, especially in its manufacturing process. From log debarking to finished products, there are several stages of processing that generate a considerable volume of waste, which includes solid wood waste, harmful gases, and residual water.<ref name=":0">{{Cite journal|last1=de Carvalho Araújo|first1=Cristiane Karyn|last2=Salvador|first2=Rodrigo|last3=Moro Piekarski|first3=Cassiano|last4=Sokulski|first4=Carla Cristiane|last5=de Francisco|first5=Antonio Carlos|last6=de Carvalho Araújo Camargo|first6=Sâmique Kyene|date=January 2019|title=Circular Economy Practices on Wood Panels: A Bibliographic Analysis|journal=Sustainability|language=en|volume=11|issue=4|page=1057|doi=10.3390/su11041057|doi-access=free}}</ref> Wood waste can be recycled at its end of life to make new products. Recycled chips can be used to make wood panels. Such practice reduces the use of virgin raw materials, eliminating emissions that would have otherwise been emitted in its manufacturing.{{fact|date=October 2024}} One of the studies conducted in Hong Kong<ref name=":0" /> was done using [[life-cycle assessment]] (LCA). The study aimed to assess and compare the environmental impacts of wood waste management from building construction activities using different alternative management scenarios in Hong Kong. Despite various advantages of lumber and its waste, the contribution to the study of the circular economy of lumber is still very small. Some areas where improvements can be made to improve the circularity of lumber is as follows: # First, regulations to support recycled lumber use. For example, establishing grading standards and enforcing penalties for improper disposal, especially in sectors that produce big quantities of wood waste, such as the construction and demolition sector. # Second, creating a stronger supply force. This can be achieved by improving demolition protocol and technology and enhancing the secondary raw materials market through circular business models. # Third, increase demand by introducing incentives to the construction sector and new homeowners to use recycled lumber. This can be in the form of reduced taxes for the construction of the new build.
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