Multicriteria decision analysis and environmental economics: An approximation

A multicriteria approach to address basic problems in environmental economics is proposed in this paper. The methodology is underpinned by the well-known multicriteria method called Compromise Programming together with some recent results relating to the compromise sets with the traditional optimisation of the utility functions. To illustrate the proposed methodology the following two cases are suggested: (1) the reconciliation between economic, environmental as well as recreational objectives inherent to the management of an environmental asset such as forestry system, and (2) its application to the appraisal of environmental improvements or damages when nonmonetary objectives are involved.