The optimal rotation of a flammable forest stand when both carbon sequestration and timber are valued: a multi-criteria approach

This paper proposes a multi-criteria approach that accounts for the risk of fire when determining the optimal rotation of a forest stand that is being managed for both timber production and carbon sequestration purposes. The multi-criteria framework uses in a combined way, multi-objective optimization and compromise programming methods. The proposed approach is computationally simple and allows for the quantification of conflicts between the criteria considered through the elicitation of the corresponding Pareto frontiers. Once the best portion or compromise sets of the Pareto frontiers are determined, then some indications of the increase in social welfare due to a potential reduction in the risk of fire are obtained. We illustrate the use of our methodology by applying it to an example that has previously been investigated in the forestry literature. Finally, some potential policy implications derived from the results obtained are highlighted.