Abstract: To understand the social-economic effects of the policies about ecolo gical restoration in northern Shaanxi Province of China, an investigation to the farmers was made in 2007 about the effects of Grain for Green Project (GGP) on their livelihoods, and the concerns raised by this Project. Most farmers appreci ated the compensation policy of GGP, but a few of them (89% and 22%, respect ively) considered the planting of trees and of forage species to be a priority. Although only 191% of the farmers felt that their livelihoods were adversely a ffected by the GGP and 638% of the farmers supported the project, a large prop ortion (372%) still planned to return to cultivating forested areas and grassl and, once the project was over. Therefore, the vegetations restored by the Proje ct were at the risk of being converted once more into farmland and rangeland whe n the Project’s subsidies ended, compromising the sustainability of the Project’s environmental achievements. For the success of the programs about environment al restoration, the GGP should give rational compensation to the farmers for the ir costs, make technical progress to increase the output of per unit land, and c reate jobs and training programs to transfer the rural surplus labor.

Key words: biodiversity, ecosystem functions, ecosystem management, global change, ecosystem services