Comparative analysis of decision-making methodologies used in environmental planning
It is the objective of this study to analyze the methodologies used for the evaluation of alternative projects in the environmental planning procedure. There are many methodologies used for evaluation of a project or alternative actions such as financial analysis, cost effectiveness analysis, cost benefit analysis and multicriteria analysis. The main methodologies that are being considered in this study are cost benefit analysis and multicriteria analysis. They are two basic methodologies which facilitate the decision-making procedure especially in cases where many criteria should be taken into account in the decision-making model. The character of data being worked out by each methodology differs. Cost benefit analysis is a monetary based technique and all variables should have a monetary value while multicriteria analysis is a non-monetary technique and it can incorporate qualitative variables. The advantages and disadvantages of each methodology are being discussed in the study in order to find a methodology suitable for evaluating alternative actions under the sustainability concept. © 2007 WIT Press.