Wood energy use has strongly increased in Europe in the last decade entailing enhanced resource competition between the wood energy sector and the material-based wood sector. We applied the basket of benefit method for the forestry and wood cluster of the study area Bavaria to evaluate the impact of increased wood energy use and decreased material-based wood use on global warming potential, primary energy demand and particulate matter emissions. A baseline and a wood energy scenario were developed until 2035 and wood utilization in both scenarios was assessed via a Life Cycle Assessment of prevalent wood products, imported timber and conventional alternatives of use. The study reveals that, according to the modelled scenarios and the average substitution factors used, a demand shift towards more wood energy leads to a minor increase in global warming potential and to a reduction in primary energy demand. Increase in particulate matter emissions from wood energy use is strong, but definite conclusions cannot be drawn due to lack in data for material-based wood use. Moreover, the study results vary strongly depending on the products used for the comparative analysis. Through our approach, the ecological impact of increased wood energy use becomes visible for a whole region, taking into account the effect of a demand shift and of interdependent substitution effects. (c) 2015 Elsevier Ltd. All rights reserved.