1 choi, mihee 2008. 8. 11 multi-criteria analysis on decision-making process in public investment in...

1

Choi, Mihee2008. 8. 11

Multi-criteria analysis on Decision-Making Process in Public

Investment in case of road construction project in

Korea

I. Introduction

II. Multi-Criteria Analysis in Decision-Making Process

- Environmental cost-benefit analysis as EIA - Stakeholder participation

III. Decision-Making Process Problem in Public Investment

IV. Case Study

V. Lession

Contents

3

Study Point andMethodology

4

Focus on three categories

Positive Impact on the Environmental/ Economical Efficiency-Positive impact on the environment, EIA-Economically efficient, CBA

Study point and Methodology usedStudy point and Methodology used

Various Factors and their Priorities- Consideration of the various factors and priorities, MCA

Stakeholder’s Opinion- Reflection on stakeholders’ opinion in EIS, PI

5

Decision-Making System in SOC investment

6

Decision-Making Process in Korea

Environmental Impact Analysis (EIA)

Decision-making System in SOC construction, KoreaDecision-making System in SOC construction, Korea

Stakeholder Participation: Public Involvement (PI)

Cost-Benefit Analysis (CBA)

To minimize economical damage

To get rid of disbelief of administration

7

Case Study Chuncheon-Yangyang Highway

Construction Project

8

Information of Baekdudaekan Ecosystem

Case study of Chuncheon-Yangyang HighwayCase study of Chuncheon-Yangyang Highway

9

Pressure of Development on Baekdudaekan

Development Project:- Until currently, large-scale project have continued.- Mines, dams, routes, leisure facilities, farmland, etc.- Ecosystem has been destroyed on a large scale by projects.- 8% of Baekdudaegan has been damaged.


Road and Railroad in Baekdudaekan- There are a lot of roads.- 30 Pavements, 3 railroad and 20 forest roads which go through

7.88km.- This construction has seriously damaged Baekdudaegan.

10

Chuncheon-Yangyang highway project


Outline of the Project- Large-scaled road construction has 4 lines.- Total amount of project is around 3,843.9 billion won.- 71.7km long tunnel will be constructed.- This tunnel will extend over 10.9km through Baekdudaekan.

11

Chuncheon-Yangyang highway project


12

Multi-criteria analysis in Decision-making Process, Chuncheon-

Yangyang Highway

13

Environmental Impact Analysis (EIA)

Predictive and Evaluative Stage-Identification of impacts-Prediction of impacts-Evaluation of impacts

Multi-criteria analysis in Decision-makingMulti-criteria analysis in Decision-making

Evaluation Stage- Measured in economic terms : Use information on the relationship among physical,

biological, ecological attributes- Note the major problem : limitation of theory and data

Cost Benefit Analysis (CBA)

Multi-Criteria Analysis (MCA)

14

Environmental Impact Analysis (EIA) Problem

EIS not anticipate and evaluate the result-Limitation of both theory and data in the realm of biology and ecology-Go through the UNESCO biosphere reservation in Bakdudaekan-Violates Bakdudaekan Protection Law-Caused conflicts between the Government and the residents


15


Evaluation Stage- EIA does not satisfactorily give environmental

impact : cannot get precise result to convert it into

economic value- Use I presuppose an assumption : destruction of ecosystem is around as half-length

of tunnel- The result : Total cost of construction: 24,336 billion won : Total benefit: 19,728 billion won : B/C ratio: o.81 : NPV: 4,608 billion won

Cost Benefit Analysis (CBA) Problem

16

Public forum at EIA and Public Involvement: Problem

Public Involvement Setup: - In July 2005, the government and NGO asserted their own opinions but not reach the agreement it in TV debate- In Setember 2005, NGOs held the forum with stakeholders- Negotiation impossible each other, NGOs and government


Public Forum - Government used PI, when the government got residents’

opinion

Public Involvement Process:- Open a website(http://www.ccyypi.net)- From September 2005 through March 2006: three conference- Government interest : highway construction and impact reduction- So, be never interested in discussing in social request item

17


Reasons decision-making process complicate- Hard to anticipate environmental impact- To evaluate economic efficiency, we cannot avoid strong

assumption- To protect ecosystem of Baekdudaegan institutionally- Sharpening conflict

Multi-criteria Analysis (MCA): limitation

Because of this reason- Strongly suggest MCA method- : environments, economics, institutions and opinions of

residents

18

Multi-criteria Analysis: EIA, CBA, PI


National environmental impact for Backdudaekan(EIA)

Valuation of economic efficiency(CBA)

Opinions of Residents(PI)

Consideration of institution and policy

19

Multi-criteria Analysis: EIA, CBA, PI


Elements as multi-criteria analysis: AHP - Environmental influence: 0.417- Economical influence: 0.140- Policy and system: 0.388- Democracy in decision-making process in policy: 0.155

Priority is the following orders- (1) environmental influence- (2) economical influence- (3) policy and system- (4) democracy in decision-making process in policy

lesson- necessary to give priority to environment and economic- policy and institution take precedence over economical influence- reconsider the construction of Chuncheon-Yangyang highway

20

Lesson

EIA requires anticipation and valuation of environmental impact

Environmental BCA have to be included when we evaluate environmental impact

In decision-making process, included following information-The policy and institutional effect-Deliberative decision-making-Environmental impact-Economic effect

Should consider the following points(MCA)


21

Thank You

Multicritia analysis on decisionmaking process in public

investment - in case of road construction project,

Korea

1 choi, mihee 2008. 8. 11 multi-criteria analysis on decision-making process in public investment in...

Documents