Abstract: Conducting a cost-benefit analysis of nature reserves is conducive to the long-term stable operation and management of the reserves. We analyzed the costs and benefits of forest ecosystem in Shennongjia National Nature Reserve, and clarified the costs borne and benefits obtained by various stakeholders, including the central government, local government, and community residents. Result showed that: (1) The benefits generated by the forest ecosystem in Shennongjia Nature Reserve far outweighed its costs, indicating that the reserve has an economic advantage in terms of returns. (2) While the community residents around the reserve undertook relatively more costs, their benefits were less than those of local governments. The central and local governments should appropriately compensate the costs of community residents. In conclusion, the forest ecosystem of Shennongjia National Nature Reserve provides enormous ecological benefits. A holistic and long-term perspective should be taken for the construction and management of the reserve. Only by properly handling the relationship between the reserve and surrounding community residents can we truly achieve the permanent protection, sustainable utilization and harmonious development of the nature reserve.

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