Abstract: It is of great significance to scientifically determine the compensation areas and compensation standards for optimizing the ecological compensation policies. Taking Shanxi Province as a case study area, we analyzed the supply and demand of ecosystem services from 2000 to 2022 based on modified ecosystem service value coefficients and socio-economic data, and identified the output and input areas of the ecosystem service flows based on the supply-demand ratio. We calculated and analyzed the scope, intensity and flow of ecosystem service using the breakpoint formula and field strength model, and established an ecological compensation model in combination with factors such as natural differences, socio-economic development level and residents' willingness to pay. Finally, the cities to be compensated for ecological compensation in Shanxi Province, the cities to compensate and the amount of compensation were determined. The results showed that there was a significant spatial differentiation between the supply and demand of ecosystem services in Shanxi Province, and the service supply was spatially distributed in a pattern of "high in the south and low in the north, high in the east and low in the west". The demand for services was concentrated in the north-south and strip-like areas in the central part of the province. The supply and demand of ecosystem services in different areas of Shanxi Province was different. Overall, there was an imbalance between supply and demand in many areas, and this trend continued to intensify in the past 22 years. From 2000 to 2022, the ratio of recipients to payers of ecological compensation in Shanxi Province at the municipal level changed from 5:6 to 6:5. The flow intensity remained stable, while the amount of value transfer increased. The high-value output areas were mainly concentrated in Xinzhou and Jinzhong, while the low-value areas remained unchanged. The total amount of ecological compensation in Shanxi Province increased from 17.810 2 billion yuan to 23.865 3 billion yuan from 2000 to 2022. In terms of spatial distribution, it presented a pattern of "compensation recipients in the middle, payers in the south and north". Accordingly, targeted protection and ecological compensation strategies were proposed according to the actual situation of each region in the output and input areas of ecosystem service flows.