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

Author

Listed:
  • Mark Clintworth

    (European Investment Bank)

  • Evangelos Boulougouris

    (University of Strathclyde)

  • Byung Suk Lee

    (University of Strathclyde)

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.

Suggested Citation

  • Mark Clintworth & Evangelos Boulougouris & Byung Suk Lee, 2018. "Combining multicriteria decision analysis and cost–benefit analysis in the assessment of maritime projects financed by the European Investment Bank," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(1), pages 29-47, March.
    • Handle: RePEc:pal:marecl:v:20:y:2018:i:1:d:10.1057_s41278-017-0072-x
    DOI: 10.1057/s41278-017-0072-x
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    References listed on IDEAS

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    Cited by:

    1. Majid Eskafi & Reza Fazeli & Ali Dastgheib & Poonam Taneja & Gudmundur F. Ulfarsson & Ragnheidur I. Thorarinsdottir & Gunnar Stefansson, 2020. "A value-based definition of success in adaptive port planning: a case study of the Port of Isafjordur in Iceland," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(3), pages 403-431, September.
    2. Ebeling Antoine, 2022. "European investment Bank loan appraisal, the EU climate bank ?," Working Papers of BETA 2022-10, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Igor Perechuda, 2022. "Why Scientists Do Not Like EU Funding Policy? A Research Review on Performance Evaluation of EU Funding Activities," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 308-319.

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