LAUSR

Abstract Forests generate a wide range of ecosystem services that support human well-being and socioeconomic development. However, traditional calculations of the value of these services generally failed to account for their costs. To understand the difference between the value (VES) and the net value (NES) of forest ecosystem services, we used government statistics and data from published papers about the values and costs of these services to calculate the NES of China's forest ecosystems. After accounting for the opportunity costs (water consumption and land rent), the investments in conservation and restoration of forests, and the cost of management to prevent natural disasters, China's forest NES averaged 13.3 × 103 RMB ha−1 year−1, which is only 30.1% of the average VES of 44.2 × 103 RMB ha−1 year−1 calculated using the traditional approach. We also found NES was negative in parts of eastern China because of the region's excessive investments in forests. Accounting for the costs to determine the true (net) value of ecosystem services suggests that this region should reconsider the size and nature of its investments to optimize its land use. Our findings provide a reference for the management of other ecosystems in the world where VES calculations may ignore significant costs of ecological restoration and conservation, resulting in inappropriate investments in ecosystems and improper planning of land use. The methods we describe can help restoration managers identify and solve these problems.