Abstract

In this paper we propose how the utility theory of MCDM (Multiple Criteria Decision Making) and MADM (Multiple Agents Decision Making) could be effectively utilized for Environmental Impact Assessment (EIA) of public projects. In the EIA we propose to include the assessment of preference of regional inhabitants in addition to the assessment of physical/biologica1 effect of each pollution. For assessing preference of regional inhabitants we take into account the complex interdependence, called convex dependence, among multiple attributes when we construct a mu1tiattribute disutility function. By using a multiattribute disutility function, we could evaluate the effectiveness of various countermeasures for preventing the environmental impact of the concerning project. We also propose to include a consensus formation process between two conflicting agents such as regional inhabitants and the enterpriser of the concerning project. For this purpose we construct a group disutility function for two conflicting agents taking into account the convex dependence between them. This is called the multi-agent utility theory. By using such a group disutility function, we can model the mutual concession of the two conflicting agents, and hence we could expect a fair MADM for realizing better social welfare.

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