Aiming　at　the　contradiction　between　the　economy　and　ecological　environment　in　the　recycling　process　of　waste　paper,　using　the　material　flow　as　a　carrier　to　construct　the　value　flow　of　waste　paper　recycling　system.　The　connotation　of　ecological　cost　of　waste　paper　recycling　system　was　defined,　and　its　ecological　cost　accounting　model　was　established.　Taking　the　minimum　ecological　cost　of　waste　paper　recycling　system　as　the　objective　function,　the　optimal　design　was　based　on　the　constraint　condition　of　economic　benefits,　manufacturing　process　conditions,　national　policy　and　industrial　standards.　The　results　showed　that　the　ecological　cost　was　reduced　to　1385.69　yuan　per　ton　after　optimization,　which　was　down　by　456.8　yuan　per　ton　compared　with　that　before　optimization,　and　the　decrease　was　24.79%.　At　the　same　time,　the　economic　benefit　increased　to　1326.95　yuan　per　ton,　13.51%　higher　than　that　before　the　optimization.　It　was　suggested　that　the　enterprises　of　waste　paper　recycling　ought　to　develope　intensively　in　the　future,　increase　the　amount　of　larger-scale　packing　plant;　properly　control　the　price　of　waste　paper,　avoid　the　high　price　of　waste　paper.　A　moderate　economic　compensation　to　waste　paper　recycling　enterprise　from　government,　would　be　benefit　to　both　economy　and　ecological　environment.　©　2018,　China　National　Pulp　and　Paper　Research　Institute(CNPPRI).　All　right　reserved.