Multiple-criteria decision analysis (MCDA) is a sub-discipline of operations research that explicitly evaluates multiple conflicting criteria in decision making (both in daily life and in settings such as business, government, and medicine). Conflicting criteria are typical in evaluating options: cost or price is usually one of the main criteria, and some measure of quality is typically another criterion, easily in conflict with the cost. In purchasing a car, cost, comfort, safety, and fuel economy maybe some of the main criteria we consider – unusually, the cheapest car is the most comfortable and the safest one. In portfolio management, managers are interested in getting high returns while simultaneously reducing risks; however, the stocks that can bring high returns typically carry a high risk of losing money. In a service industry, customer satisfaction and the cost of providing service are fundamental conflicting criteria.
Published in Chapter:
Energy Market in the Post-COVID-19 World: Structural Analysis of Critical Factors for China
Copyright: © 2022
|Pages: 19
DOI: 10.4018/978-1-6684-3374-4.ch005
Abstract
The objective of this chapter was to structurally model the high priority factors in the face of the impact of severe acute respiratory syndrome COVID-19 on the energy market. The method was based on interpretive structural modeling, and the matrix of crossed impacts multiplication was applied to classification. A model of 12 factors structured hierarchically in six levels is proposed in which consumption preferences, regulatory and normative modifications, political restrictions, and planning strategies have the greatest influence on the energy market from the perspective of China. As a result of this, it is suggested to move towards greater participation of public and private actors in renewable energy vectors.