Social Multi-Criteria Evaluation for a Sustainable Economy

The real world is characterized by deep complexity. May be a rather unremarkable observation, yet it has important implications on the manner policy problems are represented and decision-making is framed. Is contemporary democracy compatible with science

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Giuseppe Munda

Social Multi-Criteria Evaluation for a Sustainable Economy

Giuseppe Munda Joint Research Centre of the European Commission (JRC) Institute for the Protection and Security of the Citizen (IPSC) Econometrics and Applied Statistics Unit (EAS) TP 361 21020 Ispra (VA) Italy [email protected] and Universitat Autonoma de Barcelona Department of Economics and Economic History Institute of Environmental Sciences and Technologies 08193 Bellaterra (Barcelona) Spain

ISBN-13: 978-3-540-73702-5

e-ISBN-13: 978-3-540-73703-2

Library of Congress Control Number: 2007938411 © Springer-Verlag Berlin Heidelberg 2008 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifi cally the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfi lm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable for prosecution under the German Copyright Law. The use of registered names, trademarks, etc. in this publication does not imply, even in the absence of a specifi c statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Printed on acid-free paper 9 8 7 6 5 4 3 2 1 springer.com

To my wife Michela and my children Sofia and Enrico “Dal primo giorno ch’io vidi il suo viso - in questa vita, infino a questa vista, - non m’è il seguire al mio cantar preciso; …” Dante Alighieri – La Divina Commedia, “Paradiso, XXX, 28–33”.

Preface

The real world is characterized by deep complexity. May be a rather unremarkable observation, yet it has important implications on the manner policy problems are represented and decision-making is framed. Is contemporary democracy compatible with science in real-world policy-making? This book gives answers in the affirmative. It also asserts that this congruence can have positive implications not only in terms of economic prosperity but also when dealing with the difficult sustainability policy problems of our millennium. To address contemporary issues economic science will have to expand its empirical relevance by introducing more and more realistic assumptions to its models. One of the most interesting research orientations in recent times in the field of public economics is the explicit attempt to take account of political constraints, interest groups and collusion effects. One of the main novelties of this book is its establishment of a clear relationship between social and public choice theories on one hand, and multiple criteria decision analysis on the other. The pioneering research developed by Arrow and Raynaud (1986) has shown that the relationships between multi-criteria decision theory and social choice are clear and relevant. The main directions of cross-fertilizat