Alternative economic evaluation procedures and water development projects: the multiple objective problem

Abstract

Alternative Economic Evaluation Procedures and Water Development Projects. The Multiple Objective Problem The relationship among varying social objectives is of paramount importance with regard to evaluation and cost allocation processes in water resource use, development, and management projects. This study examines the philosophical and ethical base underlying proposed procedures for dealing with the multiple objective problem. The specific objectives of the study were (1) to account for the evolution of the multiple objective function, (2) to identify the relationships among objectives in water resource development, and (3) to identify the effect of relationships among objectives on the ultimate value of the trade-off ratio as well as the calculation process. Several legislative documents relating to public intervention in water resource development were reviewed in an attempt at accounting for the evolution of the multiple objective function, and at identifying the relationships among objectives. It was concluded that the multiple objective function was prevalent even in early legislation. Only the elements of the function have changed over time. The relationships among objectives, however, have not been made explicit. A tentative framework is presented which provides insight into the effects of various types of relationships on the ultimate value of the trade-off ratio and the trade-off calculation process. Decision rules and techniques involving trade-offs will have to be quite sophisticated, given interdependent relationships among objectives