Agriculture Reference
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process, decision-makers specify aspiration levels to be achieved. Also,
worst levels acceptable (reservation levels) may be set for one or more
criteria restricting the set of alternatives included in the decision space.
Aspiration and reservation levels should be set within efficient ranges of
variation. After some iterations, possibilities of compromise and
corresponding trade-offs can be explored. In order to initiate the
exploratory process, one can start by projecting the ideal point onto the
efficient frontier. Discussion is facilitated by different types of dialogues
that enhance interaction between DM(s) and the model. Besides focusing
search on 'desirable values', the DM can specify minimal requirements on
criterion values (reservation levels)
8
.
In case of aiming at the ideal point (second column in Table 15.8),
the alternative of 1 ester and 2 ethanol transformation units, is selected,
corresponding to the unitary tax exemption vector for ethanol and bio-
diesel and respectively. This solution seems
interesting but it could be improved especially regarding public spending.
So, aspiration levels are set at this solution point except for public spending
which is attempted to reach its optimum (column 2 in Table 15.8).
Projection results in lower expenditures (unitary tax exemptions for ethanol
and bio-diesel
and
respectively), reducing
considerably industry profits.
In terms of trade-off between public expenditure and GHG
savings, this efficient solution suggests to the DM a solution that decreases
the level of
savings by 26 thousand tons for a budgetary gain of 369
million FF.
When environmental concerns impose minimum performance
regarding GHG, a reservation level can be set on criterion
savings'.
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