IDEAS home Printed from https://ideas.repec.org/p/ris/fcnwpa/2019_004.html
   My bibliography  Save this paper

Using Value-Focused Thinking and Multi-Criteria Group Decision-Making to Evaluate Energy Transition Alternatives

Author

Listed:
  • Höfer, Tim

    (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))

  • von Nitzsch, Rüdiger

    (Chair of Decision Theory and Financial Services)

  • Madlener, Reinhard

    (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))

Abstract

The future transformation of the energy system is a contentious topic, involving a variety of conflicting opinions and interests. In order to structure and evaluate these opinions, we develop a group decision-making process with professional stakeholders and energy experts. The aim of this process is to develop a common objective system for the energy transition and to evaluate four possible energy transition alternatives for Germany until 2030. The stakeholders are involved in every step of the decision-making process – the development of the alternatives, the definition of the objective system, and the final evaluation of the alternatives. We apply Value-Focused Thinking (VFT) to define and structure the objectives of the stakeholders and use Multi-Attribute Utility Theory (MAUT) to evaluate the preferences of the stakeholders towards these objectives. The results show that a majority of the stakeholders prefers the energy transition alternative, which has the highest ambitions to limit climate change. A minority prefers the pan-European alternative where Germany’s power system is further integrated into the European energy system.

Suggested Citation

  • Höfer, Tim & von Nitzsch, Rüdiger & Madlener, Reinhard, 2019. "Using Value-Focused Thinking and Multi-Criteria Group Decision-Making to Evaluate Energy Transition Alternatives," FCN Working Papers 4/2019, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
  • Handle: RePEc:ris:fcnwpa:2019_004
    as

    Download full text from publisher

    File URL: https://www.fcn.eonerc.rwth-aachen.de/global/show_document.asp?id=aaaaaaaaaispdnl
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Renn, Ortwin, 2003. "Social assessment of waste energy utilization scenarios," Energy, Elsevier, vol. 28(13), pages 1345-1357.
    2. Madlener, Reinhard & Kowalski, Katharina & Stagl, Sigrid, 2007. "New ways for the integrated appraisal of national energy scenarios: The case of renewable energy use in Austria," Energy Policy, Elsevier, vol. 35(12), pages 6060-6074, December.
    3. Yorgos Goletsis & John Psarras & Jesus-Emmanuel Samouilidis, 2003. "Project Ranking in the Armenian Energy Sector Using a Multicriteria Method for Groups," Annals of Operations Research, Springer, vol. 120(1), pages 135-157, April.
    4. Kowalski, Katharina & Stagl, Sigrid & Madlener, Reinhard & Omann, Ines, 2009. "Sustainable energy futures: Methodological challenges in combining scenarios and participatory multi-criteria analysis," European Journal of Operational Research, Elsevier, vol. 197(3), pages 1063-1074, September.
    5. Haralambopoulos, D.A. & Polatidis, H., 2003. "Renewable energy projects: structuring a multi-criteria group decision-making framework," Renewable Energy, Elsevier, vol. 28(6), pages 961-973.
    6. Ralph L. Keeney, 1982. "Feature Article—Decision Analysis: An Overview," Operations Research, INFORMS, vol. 30(5), pages 803-838, October.
    7. Ralph L. Keeney, 2012. "Value-Focused Brainstorming," Decision Analysis, INFORMS, vol. 9(4), pages 303-313, December.
    8. Kumar, Abhishek & Sah, Bikash & Singh, Arvind R. & Deng, Yan & He, Xiangning & Kumar, Praveen & Bansal, R.C., 2017. "A review of multi criteria decision making (MCDM) towards sustainable renewable energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 596-609.
    9. Angelis, Aris & Kanavos, Panos, 2016. "Value-based assessment of new medical technologies: towards a robust methodological framework for the application of multiple criteria decision analysis in the context of health technology assessment," LSE Research Online Documents on Economics 65148, London School of Economics and Political Science, LSE Library.
    10. Abbas Mardani & Ahmad Jusoh & Edmundas Kazimieras Zavadskas & Fausto Cavallaro & Zainab Khalifah, 2015. "Sustainable and Renewable Energy: An Overview of the Application of Multiple Criteria Decision Making Techniques and Approaches," Sustainability, MDPI, vol. 7(10), pages 1-38, October.
    11. J. P. Brans & Ph. Vincke, 1985. "Note---A Preference Ranking Organisation Method," Management Science, INFORMS, vol. 31(6), pages 647-656, June.
    12. Wolfgang Ossadnik & Stefanie Schinke & Ralf H. Kaspar, 2016. "Group Aggregation Techniques for Analytic Hierarchy Process and Analytic Network Process: A Comparative Analysis," Group Decision and Negotiation, Springer, vol. 25(2), pages 421-457, March.
    13. Lootsma, F. A. & Boonekamp, P. G. M. & Cooke, R. M. & Van Oostvoorn, F., 1990. "Choice of a long-term strategy for the national electricity supply via scenario analysis and multi-criteria analysis," European Journal of Operational Research, Elsevier, vol. 48(2), pages 189-203, September.
    14. Barcus, Ana & Montibeller, Gilberto, 2008. "Supporting the allocation of software development work in distributed teams with multi-criteria decision analysis," Omega, Elsevier, vol. 36(3), pages 464-475, June.
    15. Georgopoulou, E. & Sarafidis, Y. & Diakoulaki, D., 1998. "Design and implementation of a group DSS for sustaining renewable energies exploitation," European Journal of Operational Research, Elsevier, vol. 109(2), pages 483-500, September.
    16. Keeney, Ralph L. & Renn, Ortwin & von Winterfeldt, Detlof, 1987. "Structuring West Germany's energy objectives," Energy Policy, Elsevier, vol. 15(4), pages 352-362, August.
    17. Schweizer, Pia-Johanna & Bovet, Jana, 2016. "The potential of public participation to facilitate infrastructure decision-making: Lessons from the German and European legal planning system for electricity grid expansion," Utilities Policy, Elsevier, vol. 42(C), pages 64-73.
    18. Aris Angelis & Panos Kanavos, 2016. "Value-Based Assessment of New Medical Technologies: Towards a Robust Methodological Framework for the Application of Multiple Criteria Decision Analysis in the Context of Health Technology Assessment," PharmacoEconomics, Springer, vol. 34(5), pages 435-446, May.
    19. Samuel D. Bond & Kurt A. Carlson & Ralph L. Keeney, 2008. "Generating Objectives: Can Decision Makers Articulate What They Want?," Management Science, INFORMS, vol. 54(1), pages 56-70, January.
    20. Jyrki Wallenius & James S. Dyer & Peter C. Fishburn & Ralph E. Steuer & Stanley Zionts & Kalyanmoy Deb, 2008. "Multiple Criteria Decision Making, Multiattribute Utility Theory: Recent Accomplishments and What Lies Ahead," Management Science, INFORMS, vol. 54(7), pages 1336-1349, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wolff, Stefanie & Madlener, Reinhard, 2020. "Willing to Pay? Spatial Heterogeneity of e-Vehicle Charging Preferences in Germany," FCN Working Papers 9/2020, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    2. Liu, Xueying & Madlener, Reinhard, 2021. "The sky is the limit: Assessing aircraft market diffusion with agent-based modeling," Journal of Air Transport Management, Elsevier, vol. 96(C).
    3. Hellwig, Robert & Atasoy, Ayse Tugba & Madlener, Reinhard, 2020. "The Impact of Social Preferences and Information on the Willingness to Pay for Fairtrade Products," FCN Working Papers 6/2020, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    4. Walter, Antonia & Held, Maximilian & Pareschi, Giacomo & Pengg, Hermann & Madlener, Reinhard, 2020. "Decarbonizing the European Automobile Fleet: Impacts of 1.5 °C-compliant Climate Policies in Germany and Norway," FCN Working Papers 18/2020, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    5. Höfer, Tim & Madlener, Reinhard, 2020. "A participatory stakeholder process for evaluating sustainable energy transition scenarios," Energy Policy, Elsevier, vol. 139(C).
    6. Liu, Xueying & Madlener, Reinhard, 2019. "Get Ready for Take-Off: A Two-Stage Model of Aircraft Market Diffusion," FCN Working Papers 15/2019, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tim H¨ofer & Rüdiger von Nitzsch & Reinhard Madlener, 2020. "Using Value-Focused Thinking and Multicriteria Decision Making to Evaluate Energy Transition Alternatives," Decision Analysis, INFORMS, vol. 17(4), pages 330-355, December.
    2. Höfer, Tim & Madlener, Reinhard, 2020. "A participatory stakeholder process for evaluating sustainable energy transition scenarios," Energy Policy, Elsevier, vol. 139(C).
    3. Behzadian, Majid & Kazemzadeh, R.B. & Albadvi, A. & Aghdasi, M., 2010. "PROMETHEE: A comprehensive literature review on methodologies and applications," European Journal of Operational Research, Elsevier, vol. 200(1), pages 198-215, January.
    4. Zhou, P. & Ang, B.W. & Poh, K.L., 2006. "Decision analysis in energy and environmental modeling: An update," Energy, Elsevier, vol. 31(14), pages 2604-2622.
    5. Kowalski, Katharina & Stagl, Sigrid & Madlener, Reinhard & Omann, Ines, 2009. "Sustainable energy futures: Methodological challenges in combining scenarios and participatory multi-criteria analysis," European Journal of Operational Research, Elsevier, vol. 197(3), pages 1063-1074, September.
    6. Çolak, Murat & Kaya, İhsan, 2017. "Prioritization of renewable energy alternatives by using an integrated fuzzy MCDM model: A real case application for Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 840-853.
    7. Strantzali, Eleni & Aravossis, Konstantinos, 2016. "Decision making in renewable energy investments: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 885-898.
    8. Tobias Witt & Matthias Klumpp, 2021. "Multi-Period Multi-Criteria Decision Making under Uncertainty: A Renewable Energy Transition Case from Germany," Sustainability, MDPI, vol. 13(11), pages 1-20, June.
    9. G Montibeller & L A Franco, 2011. "Raising the bar: strategic multi-criteria decision analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(5), pages 855-867, May.
    10. Kayakutlu, Gulgun & Daim, Tugrul & Kunt, Meltem & Altay, Ayca & Suharto, Yulianto, 2017. "Scenarios for regional waste management," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1323-1335.
    11. Wang, Jiang-Jiang & Jing, You-Yin & Zhang, Chun-Fa & Zhao, Jun-Hong, 2009. "Review on multi-criteria decision analysis aid in sustainable energy decision-making," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(9), pages 2263-2278, December.
    12. Aikaterini Papapostolou & Charikleia Karakosta & Kalliopi-Anastasia Kourti & Haris Doukas & John Psarras, 2019. "Supporting Europe’s Energy Policy Towards a Decarbonised Energy System: A Comparative Assessment," Sustainability, MDPI, vol. 11(15), pages 1-26, July.
    13. Ifaei, Pouya & Tayerani Charmchi, Amir Saman & Loy-Benitez, Jorge & Yang, Rebecca Jing & Yoo, ChangKyoo, 2022. "A data-driven analytical roadmap to a sustainable 2030 in South Korea based on optimal renewable microgrids," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    14. Mónica D. Oliveira & Inês Mataloto & Panos Kanavos, 2019. "Multi-criteria decision analysis for health technology assessment: addressing methodological challenges to improve the state of the art," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(6), pages 891-918, August.
    15. Papapostolou, Aikaterini & Karakosta, Charikleia & Nikas, Alexandros & Psarras, John, 2017. "Exploring opportunities and risks for RES-E deployment under Cooperation Mechanisms between EU and Western Balkans: A multi-criteria assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 519-530.
    16. Athanasios Kolios & Varvara Mytilinou & Estivaliz Lozano-Minguez & Konstantinos Salonitis, 2016. "A Comparative Study of Multiple-Criteria Decision-Making Methods under Stochastic Inputs," Energies, MDPI, vol. 9(7), pages 1-21, July.
    17. Doukas, Haris, 2013. "Modelling of linguistic variables in multicriteria energy policy support," European Journal of Operational Research, Elsevier, vol. 227(2), pages 227-238.
    18. Büyüközkan, Gülçin & Karabulut, Yağmur, 2017. "Energy project performance evaluation with sustainability perspective," Energy, Elsevier, vol. 119(C), pages 549-560.
    19. Baudry, Gino & Macharis, Cathy & Vallée, Thomas, 2018. "Can microalgae biodiesel contribute to achieve the sustainability objectives in the transport sector in France by 2030? A comparison between first, second and third generation biofuels though a range-," Energy, Elsevier, vol. 155(C), pages 1032-1046.
    20. Angelis, Aris & Kanavos, Panos, 2017. "Multiple Criteria Decision Analysis (MCDA) for evaluating new medicines in Health Technology Assessment and beyond: The Advance Value Framework," Social Science & Medicine, Elsevier, vol. 188(C), pages 137-156.

    More about this item

    Keywords

    Group Decision-Making; MAUT; Value-Focused Thinking; Energy Scenarios;
    All these keywords.

    JEL classification:

    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:fcnwpa:2019_004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hendrik Schmitz (email available below). General contact details of provider: https://edirc.repec.org/data/fceonde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.