An AHP-based multi-criteria model for sustainable supply chain development in the renewable energy sector

Abstract

The aim of this paper is to provide a multi-criteria decision making framework based on the Triple Bottom Line principles and Analytic Hierarchy Process methodology for sustainable supply chain development in the renewable energy sector. The proposed framework encompasses the whole energy production supply chain, from raw materials’ suppliers to disposal. In particular, the photovoltaic energy sector has been used as case study and represents the focus of this work. The framework is based on the three Triple Bottom Line dimensions such as social, economic and environmental. Furthermore, literature review and expert opinions are used to identify and assess the sub-criteria for each dimension, followed by pair-wise comparison. Finally, the proposed framework is used to evaluate the seven European countries that conjointly represent the 86.8% of the total photovoltaic installed capacity in Europe, using both logical and quantitative information. Results are in agreement with the photovoltaic development in the period 2000-2017 in these countries. The proposed framework provides the decision makers with a powerful tool for making sustainable investment decisions in the photovoltaic energy sector.