Thepaperassessestheeconomicimpactsofthenaturalforestprotectionprogram(NFPP)ontheeconomyofYunnanProvince,China,intermsofgrossoutput,valueadded,employment,andhouseholdincome.Aninput-outputmodelisdevelopedtoestimateNFPP'seconomicimpactsbymeansofbackwardlinkagesintheforestrysectorandloggingandhaulagesector.ItisfoundthattheNFPPhaspositiveimpactsongrossoutput,valueaddedandhouseholdincomeintheinitialyear,buthassignificantlynegativeimpactsontheregionaleconomyinthefollowingyearsastheinvestmentdecreases.