Author:

Keywords:

Multi-criteria analysis, Multi-criteria decision aid, Institutions, Institutional approach, Stakeholder, Science & Technology, Technology, Transportation, FOUNDATIONS, 1507 Transportation and Freight Services, 3509 Transportation, logistics and supply chains

Abstract:

We demonstrate that multi-criteria analysis (MCA), though initially developed in the operations research field, can be usefully applied within the context of the stakeholder-driven or institutional approach to transport project evaluation. We first compare the features of the institutional and neo-classical approaches to economic evaluation. We then identify a number of conditions to be fulfilled for the institutional approach to result in a social optimum that is neutral from a distributional perspective. Such an optimum may not have been intentionally pursued, but may eventually arise as a by-product of the actions of self-interested, individual stakeholder groups. We illustrate the relevance of our approach through a number of recent case studies. Policy makers can use our findings as an input for designing formal decision-making processes, geared towards including stakeholder objectives in transport project evaluation.