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Applying a Multi-Criteria Project Portfolio Tool in Selecting Energy Peat Production Areas

Author

Listed:
  • Mikko Kurttila

    (Natural Resources Institute Finland (Luke), FI-80100 Joensuu, Finland)

  • Arto Haara

    (Natural Resources Institute Finland (Luke), FI-80100 Joensuu, Finland)

  • Artti Juutinen

    (Natural Resources Institute Finland (Luke), FI-90014 Oulu, Finland)

  • Jouni Karhu

    (Natural Resources Institute Finland (Luke), FI-90014 Oulu, Finland)

  • Paavo Ojanen

    (Department of Forest Sciences, University of Helsinki, FI-00100 Helsinki, Finland)

  • Jouni Pykäläinen

    (Faculty of Science and Forestry, School of Forest Sciences, University of Eastern Finland, FI-80100 Joensuu, Finland)

  • Miia Saarimaa

    (Forestry Centre Finland, FI-90100 Oulu, Finland)

  • Oili Tarvainen

    (Natural Resources Institute Finland (Luke), FI-90014 Oulu, Finland)

  • Sakari Sarkkola

    (Natural Resources Institute Finland (Luke), FI-00790 Helsinki, Finland)

  • Anne Tolvanen

    (Natural Resources Institute Finland (Luke), FI-90014 Oulu, Finland)

Abstract

This study demonstrates the characteristics of the new generic project portfolio selection tool YODA (“Your Own Decision Aid”). YODA does not include a mathematical aggregation model. Instead, the decision maker’s preferences are defined by the interactive articulation of acceptance thresholds of project-level decision criteria. Transparency and ease of adopting the method in participatory planning are sought using the method’s simple preference input. The characteristics of the YODA tool are introduced by presenting how it has been applied in participatory land use planning in northern Finland in selecting a combination of peat production sites to attain the goals defined at municipal level. In this process, each stakeholder first constructed a project portfolio that best met his or her preferences. In doing this, acceptance thresholds for project-level decision criteria were defined. In total, eight decision criteria were related to economic value, biodiversity, social impacts, and ecosystem services. Subsequently, the portfolios of different stakeholders were combined in line with the principles of robust portfolio modelling. Core projects were accepted by all stakeholders, while exterior projects were not accepted, and borderline projects by some of the stakeholders. Although the land use planning situation at hand was highly sensitive, because it was related to various aspects of sustainability, the use of YODA provided useful results. The first meeting with stakeholders identified 52 out of 99 sites that none of the stakeholders would use for energy peat production, due to their characteristics, whereas, in the second meeting, a smaller stakeholder group found 18 core projects and 26 borderline projects which could be potential areas for energy peat production. We conclude that YODA—as a generic project portfolio tool—can be used in various planning situations.

Suggested Citation

  • Mikko Kurttila & Arto Haara & Artti Juutinen & Jouni Karhu & Paavo Ojanen & Jouni Pykäläinen & Miia Saarimaa & Oili Tarvainen & Sakari Sarkkola & Anne Tolvanen, 2020. "Applying a Multi-Criteria Project Portfolio Tool in Selecting Energy Peat Production Areas," Sustainability, MDPI, vol. 12(5), pages 1-16, February.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:5:p:1705-:d:324877
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    References listed on IDEAS

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    1. Marttunen, Mika & Haara, Arto & Hjerppe, Turo & Kurttila, Mikko & Liesiö, Juuso & Mustajoki, Jyri & Saarikoski, Heli & Tolvanen, Anne, 2023. "Parallel and comparative use of three multicriteria decision support methods in an environmental portfolio problem," European Journal of Operational Research, Elsevier, vol. 307(2), pages 842-859.

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