Energy/Environment Management: Application of Decision Analysis

Buehring, W.A., Foell, W., & Keeney, R.L. (1976). Energy/Environment Management: Application of Decision Analysis. IIASA Research Report. IIASA, Laxenburg, Austria: RR-76-014

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Abstract

A procedure is presented for coping with the complexities of energy/environment decision processes. A convenient framework based on multiattribute decision analysis has been developed to help a decision maker evaluate energy/environment alternatives in terms of the degree to which each of a set of objectives is met. The resulting composite environmental impact model links a preference model with a descriptive environmental impact model. The preference model allows one to evaluate alternative strategies by formally incorporating the decision maker's utilities (i.e. preferences) with the quantified environmental impacts (supplied by the descriptive impact model), the unquantified effects, and the conventional costs. Utility assessments were performed for individuals in the Rhone-Alpes region of France, the German Democratic Republic, and the state of Wisconsin in the U.S.A. The benefits of the process and its implementation appear significant.

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