Evaluation and Control of Regional Environmental Systems in the Yodo River Basin: Socio-Economic Aspects

Abstract

For analysis of large-scale environmental systems in the industrialized Yodo River basin area, a hierarchical multilevel system with many noncommensurable goals is formulated. A regional welfare function is derived in terms of the utility function in each region. For this purpose, a preference hierarchy corresponding to an objective hierarchy is constructed. In the process of deriving individual utility functions as components of the multiattribute utility functions, mathematical optimization technique is utilized. The shadow prices (Lagrangian multipliers), which combine with the constraints, will provide the relative measures for effectiveness of environmental control. The values should be transformed to the concept of utilities, which composes the basic terms for decision analysis. For derivation of the consistent “prices”, the mathematical models can be further decomposed in possible cases of modeling. Along with methodological discussion, some computational results are presented. Equity of income distribution is also taken into consideration. Priorities of problems to be confronted in making policies for the improvement of environmental quality are sought out in the preference-hierarchical system; further, a reformation plan of the industrial structure in these regions is proposed.