Abstract
There are two modes of management of natural and cultural heritage resources in China. One is market - dominated and the other is government - dominated. The economic theoretical source for each mode is Coase theory and Pigou theory respectively. However, the phenomenon of over - development and destruction of heritage have being occurred under both modes in practice. As a special kind of resource, the protection and sustainable development of heritage could not be separated from the market mechanism and government's participation. Only the organic combination of the two modes is the correct direction for the reform of China's natural and cultural heritage management system.
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