Implementation of an ecosystem approach to natural resource management requ
ires evaluation of a broad array of ecological services in a multidimension
al, community-based watershed approach that empowers people to make informe
d management decisions. Conventional economic approaches that assign values
to ecological services (contingent valuation) or that evaluate the efficie
ncy of preserving and restoring those services (cost-benefit analysis) are
quite limited for this purpose. In addition to the methodological difficult
ies encountered in applying contingent valuation and cost-benefit analysis,
several problems occur when nonmarket values of ecological services are es
timated independently of ecosystem planning and management. Multiple attrib
ute decision-making (MADM) is an alternative conceptual framework for evalu
ating and selecting land and water resource management systems (LWRMS). Adv
antages of MADM are that it facilitates community-based collaborative decis
ion-making, avoids some of the ethical, theoretical and practical shortcomi
ngs of conventional economic approaches, does not require assigning monetar
y Values to ecological services, allows consideration of multiple attribute
s and is not culturally biased. The MADM model described in this paper expl
ains how a property manager selects the most preferred LWRMS for a property
based on their multiple stochastic attributes. Application of the model re
quires determination of the technically feasible LWRMS for a property and s
pecification of the socially acceptable ranges of attributes. This informat
ion is combined with economic/biophysical simulations to derive the efficie
nt combination of attributes and LWRMS for a property. The property manager
then selects the most preferred combination of attributes from the efficie
nt combinations of attributes for a property using utility maximization, su
rrogate worth tradeoff, free iterative search, analytical hierarchy process
, Aspiration-Reservation Based Decision Support System or stochastic domina
nce, A watershed alliance can evaluate the sustainability of the most prefe
rred LWRMS for properties in a watershed based on a weak or strong sustaina
bility criterion. If the alliance determines that the most preferred LWRMS
are not sustainable, then an index of attributes is used to evaluate the co
st effectiveness of alternative public policies for stimulating the adoptio
n of more sustainable LWRMS. (C) 1999 Elsevier Science B.V. All rights rese
rved.