Integrating uncertainty of preferences and predictions in decision models: An application to regional wastewater planning

Abstract Decision-making in environmental management requires eliciting preferences of stakeholders and predicting outcomes of decision alternatives. Usually, preferences and predictions are both uncertain. Uncertainty of predictions can be tackled by multi-attribute utility theory, but the uncertainty of preferences remains a challenge. We demonstrate an approach for including both uncertainties in a multi-criteria decision analysis (MCDA), using utility theory and the concept of expected expected utility. For a decision regarding a regional merger of wastewater infrastructure in Switzerland, we constructed preference models for four stakeholders. These models also allowed for non-additive interactions between objectives. We evaluated the performance of eleven decision alternatives for which we predicted potential outcomes. Even though uncertainties were high, we could draw conclusions based on the expected expected utility of alternatives. Building a pipeline to discharge treated wastewater to a larger river emerged as a potential consensus alternative to mitigate the problem of micropollutants in a small stream. We investigated the robustness of the findings with sensitivity analysis regarding the preference parameters and the included objectives. In their actual decision, the stakeholders partly preferred other alternatives than those proposed by the model. Their choices could be explained by reduced decision models in which only few objectives were included. This may indicate the use of simplified choice heuristics by the stakeholders. The presented approach is feasible for supporting other difficult environmental or engineering decisions in practice, for which we give a number of recommendations.