A prospect theory extension of data envelopment analysis model for wave‐wind energy site selection in New Zealand

Renewable energy sources have been utilized by countries worldwide, but offshore energy exploitation projects remain highly promising for both the world and New Zealand specifically. The selection of equipment installation locations can be challenging and requires significant investment, prompting the need for optimization in offshore energy exploitation. Wind and wave location (WWL) integrated sites offer a highly potential solution for reducing installation costs and enhancing efficiency in renewable energy exploitation. However, the decision‐making process for selecting equipment locations is crucial and directly affects the outcome. This study aims to evaluate and consider sustainable and effective equipment installation sites based on both quantitative indicators and behavioral psychology of decision making. To achieve this goal, the study utilizes the prospect theory Data Envelopment Analysis (PT‐DEA) model, which builds on PT to analyze and evaluate the effectiveness of offshore installation site selection with consideration for human psychology. By combining the results of quantitative indicators and decision‐making behavior, the study identifies sustainable and effective offshore installation sites, recommending appropriate equipment installation locations WWL. The study is also compared and referenced with relevant plans, projects, and development policies in New Zealand for confirmation.