Abstract
We develop an integrated optimization model that combines an ecological component and an economic model. We conduct trade-off analysis on northern spotted owl habitat protection and timber production. Since the quality of owl habitats depends on spatial connectivity of a certain vegetation condition, we develop a spatially explicit optimization model that can evaluate spatial patterns. Through the comparison of optimal solutions under different scenarios, we found the following: 1) expanding riparian reserves increases the quality of owl habitats, however, easing a riparian reserve constraint significantly increases the net present value (NPV) of timber production and may still maintain the quality of owl habitats. 2) without regulations regarding habitat protection, land managers achieves the highest NPV of timber production, while the quality of owl habitats deteriorates.