TY - JOUR
T1 - Combining multicriteria decision analysis and cost-benefit analysis in the assessment of maritime projects financed by the European Investment Bank
AU - Clintworth, Mark
AU - Boulougouris, Evangelos
AU - Lee, Byung Suk
N1 - This is a post-peer-review, pre-copyedit version of an article published in Maritime Economics & Logistics. The definitive publisher-authenticated version Clintworth, M., Boulougouris, E. & Lee, B.S. Marit Econ Logist (2017). Available at https://doi.org/10.1057/s41278-017-0072-x
PY - 2018/3/1
Y1 - 2018/3/1
N2 - As the financing institution of the EU the European Investment Bank (EIB) has a long history of investment in the maritime sector. The EIB’s support for the sector is guided by EU maritime policy which is increasingly influenced by non-financial criteria such as safety, environment and employment. The increasing inclusion of non-financial criteria into financial decisions adds to the degree of subjectivity involved in project investments, especially ones involving public funds. This subjectivity is present in individual decision maker’s thought processes when assessing the relative importance of each criterion. Within this context, this paper examines a methodology which combines established financial analysis methods with multi criteria decision analysis (MCDA) in order to try to address this complex issue. The aim is to develop a model, which incorporates financial and non-financial criteria whilst accounting for the inherent subjectivity in investment decision making, in a transparent and auditable manner. The paper examines the application of the model to a fleet expansion project which has been financed by the EIB. Further research is proposed including how the model may also be utilised as a performance indictor to track the degree to which EIB financing meets the goals outlined in EU maritime policy.
AB - As the financing institution of the EU the European Investment Bank (EIB) has a long history of investment in the maritime sector. The EIB’s support for the sector is guided by EU maritime policy which is increasingly influenced by non-financial criteria such as safety, environment and employment. The increasing inclusion of non-financial criteria into financial decisions adds to the degree of subjectivity involved in project investments, especially ones involving public funds. This subjectivity is present in individual decision maker’s thought processes when assessing the relative importance of each criterion. Within this context, this paper examines a methodology which combines established financial analysis methods with multi criteria decision analysis (MCDA) in order to try to address this complex issue. The aim is to develop a model, which incorporates financial and non-financial criteria whilst accounting for the inherent subjectivity in investment decision making, in a transparent and auditable manner. The paper examines the application of the model to a fleet expansion project which has been financed by the EIB. Further research is proposed including how the model may also be utilised as a performance indictor to track the degree to which EIB financing meets the goals outlined in EU maritime policy.
KW - analytical hierarchy process
KW - multi criteria decision analysis
KW - fuzzy AHP
KW - European investment bank
KW - project appraisal
KW - cost benefit analysis
UR - http://www.springer.com/business+management/journal/41278
U2 - 10.1057/s41278-017-0072-x
DO - 10.1057/s41278-017-0072-x
M3 - Article
SN - 1479-2931
VL - 20
SP - 29
EP - 47
JO - Maritime Economics & Logistics
JF - Maritime Economics & Logistics
IS - 1
ER -