ECOSEL: Multi-objective optimization to sell forest ecosystem services

ECOSEL is a voluntary market mechanism that attempts to match willing sellers of forest ecosystem services with willing buyers. The goal of this paper is to show how multi-objective programming can be used to generate minimum-cost management alternatives for a real ECOSEL auction where optimal production plans for carbon sequestration, mature forest habitat and timber revenues are to be identified. The case study is suggestive of one of the most sophisticated uses of ECOSEL that might work for some but not all forest landowners. Examples of less involved uses are also given to illustrate low transaction cost applications both within and beyond forestry.