This paper designs an Economy-Welfare-Environment Adjustment System model (EWEAS model or EWE model in short) which consists of the circular flow of the economic, the welfare, and the environment system of forestry. That is, this model builds the relationship between the systems for material wealth and that for mental wealth.
The EWE model is designed as a complete open system model which describes the economy-welfare-environment circular system in forestry by linking up the internal system of forestry with the surrounding external systems. The EWE model can be manipulated as a policy formation or a policy decision model, and it is available for policy evaluation in the economic, the welfare and the environmental phase of forestry. The model is a basic simulation system model which is reliable in its reproductive fitness, stability and universality. Thus, this model ought to be useful in any country in the world as well as in Japan.