The parameter estimation problem for the convection coefficient in ell
iptic equations is considered in the class of L-n(2)-vector fields. Th
e optimality system is characterized and the convergence of the gradie
nt method is proved. To apply the SQP-method to the singular optimalit
y system, a modification involving a feasibility step in the primal an
d dual variables is introduced. The resulting algorithm has a second-o
rder convergence rate. Numerical experiments are included.