Abstract A combined factor and consumer demand logit model for analyzing the substitution between sawnwood, particleboard, fiberboard, and gypsumboard was estimated for four industrial sectors in Norway. The causes of substitution are discussed. It is found that they are not uniform over the sectors. For instance, in the building and construction sector, labor costs dominated while in the furniture sector, price differentials between sawnwood and particleboard were most important. Sectoral substitution analyses are used to make projections of sawnwood demand, by applying a multisector macroeconomic model for Norway. For. Sci. 35(3):692-707.