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Choi, Mihee2008. 8. 11
Multi-criteria analysis on Decision-Making Process in Public
Investment in case of road construction project in
Korea
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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
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Study Point andMethodology
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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
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Decision-Making System in SOC investment
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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
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Case Study Chuncheon-Yangyang Highway
Construction Project
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Information of Baekdudaekan Ecosystem
Case study of Chuncheon-Yangyang HighwayCase study of Chuncheon-Yangyang Highway
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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.
Case study of Chuncheon-Yangyang HighwayCase study of Chuncheon-Yangyang Highway
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.
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Chuncheon-Yangyang highway project
Case study of Chuncheon-Yangyang HighwayCase study of Chuncheon-Yangyang Highway
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.
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Chuncheon-Yangyang highway project
Case study of Chuncheon-Yangyang HighwayCase study of Chuncheon-Yangyang Highway
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Multi-criteria analysis in Decision-making Process, Chuncheon-
Yangyang Highway
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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)
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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
Multi-criteria analysis in Decision-makingMulti-criteria analysis in Decision-making
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Multi-criteria analysis in Decision-makingMulti-criteria analysis in Decision-making
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
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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
Case study of Chuncheon-Yangyang HighwayCase study of Chuncheon-Yangyang Highway
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
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Multi-criteria analysis in Decision-makingMulti-criteria analysis in Decision-making
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
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Multi-criteria Analysis: EIA, CBA, PI
Case study of Chuncheon-Yangyang HighwayCase study of Chuncheon-Yangyang Highway
National environmental impact for Backdudaekan(EIA)
Valuation of economic efficiency(CBA)
Opinions of Residents(PI)
Consideration of institution and policy
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Multi-criteria Analysis: EIA, CBA, PI
Case study of Chuncheon-Yangyang HighwayCase study of Chuncheon-Yangyang Highway
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
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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)
Multi-criteria analysis in Decision-makingMulti-criteria analysis in Decision-making
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Thank You
Multicritia analysis on decisionmaking process in public
investment - in case of road construction project,
Korea