Combining multicriteria decision analysis and cost–benefit analysis in the assessment of maritime projects financed by the European Investment Bank

Mark Clintworth (), Evangelos Boulougouris and Byung Suk Lee
Additional contact information
Mark Clintworth: European Investment Bank
Evangelos Boulougouris: University of Strathclyde
Byung Suk Lee: University of Strathclyde

Maritime Economics & Logistics, 2018, vol. 20, issue 1, No 2, 29-47

Abstract: Abstract As the financing institution of the EU, the European Investment Bank (EIB) has a long history of investments in the maritime sector. The EIB’s support for the sector is guided by EU maritime policy which is increasingly influenced by non-financial criteria such as safety, environment and employment. The increasing inclusion of non-financial criteria into financial decisions adds to the degree of subjectivity involved in project investment decisions, especially the ones involving public funds. This subjectivity is present in individual decision maker’s thought processes when assessing the relative importance of each criterion. Within this context, this paper examines a methodology which combines established financial analysis methods with multicriteria decision analysis in an effort to address this complex issue. The aim is to develop a model, which incorporates financial and non-financial criteria whilst accounting for the inherent subjectivity in investment decision making, in a transparent and auditable manner. The paper examines the application of the model to a fleet expansion project which has been financed by the EIB. Further research is proposed including ways in which the model could also be utilised as a performance indictor to track the degree to which EIB financing meets the goals outlined in EU maritime policy.

Keywords: Analytical hierarchy process (AHP); Multicriteria decision analysis (MCDA); Fuzzy AHP; European Investment Bank (EIB); Project appraisal; Cost–benefit analysis (CBA) (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1057/s41278-017-0072-x Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:marecl:v:20:y:2018:i:1:d:10.1057_s41278-017-0072-x

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41278/PS2

DOI: 10.1057/s41278-017-0072-x

Access Statistics for this article

Maritime Economics & Logistics is currently edited by Hercules E. Haralambides

More articles in Maritime Economics & Logistics from Palgrave Macmillan, International Association of Maritime Economists (IAME) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().