A Method to Assess the Multiattribute Utility Function and its Application to the Regional Energy Saving System

Abstract

In this paper, we propose a method to assess the multiattribute utility function by using isoutility curves or indifference curves.The idea of this method is that by knowing the form of isoutility curve between each pair of attributes, the multiattribute utility function is uniquely determined. It is shown that, if the isoutility curve between each pair of attributes is linear, then the multiattribute utility function becomes the additive form and that, on the other hand, if the isoutility curve is hyperbolic then it becomes the multilinear form. The way to determine the scaling constants of the multiattribute utility function is also shown.As an application of this method, we deal with the decision analysis on the development of the regional energy saving system in Tobata ward of Kita-kyushu city. In this system, the waste energy from heavy industries, refuse disposal plants and sewage disposal plants is gathered and then might be reused as the energy source for air conditioning systems, hot water supply systems, desalination plants and so on. This system would utilize more effectively much of the released and abandoned energy in the region.We investigate the decision problem of whether or not such an energy saving system should be constructed and, if so, for how large objective area in Tobata this system should be developed by using the multiattribute utility function obtained from the above method.