Around 2000 plant species occur naturally in Lorestan Province of which 250 species are medicinal and myrtle is one of them. Myrtle is a shrub whose leaves and fruits have medicinal value and thus, if managed and harvested properly, could produce sustained economic benefits. In recent years, however, over half of the myrtle site areas was destroyed, due to inappropriate management and excessive harvesting practices. Thus, coming up with a practical harvesting approach along with identifying those factors damaging the sites, seems to be very crucial.

Forests are complex ecosystems that require integrated management to balance economic, social, and environmental dimensions. Conflicting objectives among stakeholders make optimal decision-making particularly challenging. This study seeks to balance the economic gains of forest harvesting with the goals of environmental conservation, with a focus on the Shafarood forest in Northern Iran. We applied multi-objective optimization and game theory to maximize the net present value (NPV) of forest harvesting while enhancing carbon sequestration. The research utilized data on stumpage prices, harvesting costs, tree density, volume per ha, growth rates, interest rates, carbon sequestration, and labour costs. Applying the epsilon-constraint method, we derived Pareto optimal solutions for a bi-objective model, and game theory was applied to negotiate between economic and environmental stakeholders. In the fifth round of bargaining, a Nash equilibrium was achieved between the two players. At this equilibrium point, the economic player achieved NPV from forest harvesting of 9001.884 (IRR 10,000/ha) and amount of carbon sequestration of 159.9383 tons/ha. Meanwhile, the environmental player achieved NPV from forest harvesting of 7861.248 (IRR 10,000/ha), along with a carbon sequestration of 159.9731 tons/ha. Results indicate significant trade-offs but reveal potential gains for both economic and environmental goals. These findings provide a robust framework for sustainable forest management and offer practical tools to support informed decision-making for diverse stakeholders.

The forest is a complex and dynamic ecosystem that requires integrated planning and management, considering economic, social, environmental, and ecological dimensions. Different stakeholders often have conflicting goals, making optimal management decisions challenging. This study aims to balance increasing economic benefits for forest users with reducing negative environmental impacts, aligning the interests of managers, government institutions, and policymakers. To achieve this, multi-objective optimization methods and game theory were used. The objectives were to maximize the net present value of wood harvesting and the amount of carbon sequestration. The study was conducted in the Shafarood forest in northern Iran. Data collected included stumpage prices, variable harvesting costs, tree density per ha, volume per ha, growth rates, interest rates, carbon sequestration, and labor costs. Using this data, models were developed for the expected mean price of various species, stored carbon, logistics growth, and labor. After adjusting the objective functions and model constraints, the range of Pareto optimal solutions for the multi-objective model and the Nash equilibrium for the game theory model were determined using the epsilon-constrain method. The results indicate that both modeling approaches can identify optimal points for balancing economic and environmental goals. The Pareto optimal range and Nash equilibrium allow for informed decision-making in managing the Hyrcanian forests, accommodating different user goals. Therefore, both models are effective tools for forest management planning and provide a framework for achieving sustainable management practices.