Constructing the FEEM Sustainability Index: A Choquet-integral application

Cruciani, C, Giove, S, Pinar, Mehmet and Sostero, M (2012) Constructing the FEEM Sustainability Index: A Choquet-integral application. 19th Annual Conference of the European Association of Environmental and Resource Economists, June 27-30, 2012, Prague, Czech Republic.

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This paper will present an application of a multi-attribute aggregation methodology to the creation of a sustainability index. Sustainability is a multi-faceted issue, in which synergies or conflicts may arise among the different components, thus making it a very interesting concept to which multi attribute methods can be applied. The case study presented in this paper addresses the development of the FEEM Sustainability Index, a composite index including 19 different indicators grouped in the three classical pillars of sustainability ‒ economic, social and environmental. After introducing the relevance of multi-attribute aggregation methodologies when dealing with such complex concepts, a theoretical section will review the main strands of research dealing with these tools. A later section will present the aggregation methodologies developed for this case study, focusing in detail on the Choquet-integral aggregation. In particular, since this methodology requires the assignment of decision weights, the main features of an ad-hoc questionnaire to assess the importance of sustainability indicators will also be presented and discussed. The paper concludes with the presentation of some of the main results that the FEEM SI allows to produce, a robustness analysis and discusses the main implications of the aggregation methodology used.

Item Type: Conference or Workshop Item (Lecture)
Subjects: G Geography. Anthropology. Recreation > GE Environmental Sciences
H Social Sciences > HB Economic Theory
Divisions: Business and Management
Date Deposited: 26 Feb 2013 12:11

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