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    Incorporating community objectives in improved wetland management:the use of the analytic hierarchy process

    Gamini Herath*

    School of Business, La Trobe University, Albury/Wodonga Campus, Wodonga, Vic. 3690, Australia

    Received 7 May 2003; revised 3 November 2003; accepted 9 December 2003

    Abstract

    Wetlands in Australia provide considerable ecological, economic, environmental and social benefits. However, the use of wetlands has

    been indiscriminate and significant damage to many Australian wetlands has occurred. During the last 150 years one third of the wetlands in

    Victoria have been lost. A conspicuous problem in wetland management is the paucity of involvement by stakeholders. This paper uses the

    Analytic Hierarchy Process (AHP) to incorporate stakeholder objectives in the Wonga Wetlands on the Murray River. The study shows that

    the AHP can explicitly incorporate stakeholder preferences and multiple objectives to evaluate management options. The AHP also provides

    several approaches for policy makers to arrive at policy decisions.

    q 2004 Elsevier Ltd. All rights reserved.

    Keywords: Wonga wetlands; Analytic hierarchy process; Stakeholder; Community; Management

    1. Introduction

    Wetlands provide important ecological, economic, and

    social benefits such as improved water quality, flood

    control, reduced nutrient pollution and habitat for a diversity

    of plants and animals and recreational opportunities and

    economic benefits to rural communities. However, many

    wetlands in Australia have been destroyed or degraded due

    to unsustainable use patterns. Not a single wetland in the

    Murray region is in its natural condition (Lugg, 1993).

    During the last 150 years, one-third of the wetlands in

    Victoria were lost and in the Murray River, over 35% ofseasonally inundated wetlands are now degraded (Pressey,

    1986; Bennett, 2000).

    The major constraints to proper management of wetlands

    are (a) excessive focus on technological approaches that

    alter the environment (b) lack of knowledge of different

    stakeholders (e.g. farmers, conservationists, recreationists,

    etc.) and their values and attitudes (c) conflicting multiple

    objectives of stakeholders and (d) difficulties in quantifying

    economic, environmental and recreational values. All these

    problems reflect the non-involvement of stakeholders

    in decision-making. An inclusive process that reflects

    community interests and provides them with a key role in

    influencing planning and management decisions will have a

    greater chance of success.

    Community involvement would provide policy alterna-

    tives that are more acceptable to the community. If

    stakeholders are adequately represented in decision-making

    allowing them to cooperate in an honest and open exchange

    of views, it is possible to reach agreed positions and

    minimise conflicts, provide in-built controls and incentives

    for conservation and sustainable use, help reduce negative

    environmental effects and increase the sustainability of

    wetlands (Wright, 1997). Participation enhances the legiti-macy of the process and conveys to the public the

    complexities of policy making and the limits of government

    capacity to respond to public needs and demands.

    Yet, community participation in wetland management in

    Australia has been limited to discussions with community

    leaders or comments on plans prepared elsewhere and

    stakeholders have little role in identifying issues, develop-

    ing alternative management options and prioritising

    choices. Hence, wetland management in Australia is in a

    state of flux. The existing institutions are becoming strained

    and less able to perform their historical function of

    mediating competing demands of wetland services. Today,

    stakeholders such as recreational users, anglers, logging

    interests, environmentalists all compete among themselves

    0301-4797/$ - see front matter q 2004 Elsevier Ltd. All rights reserved.

    doi:10.1016/j.jenvman.2003.12.011

    Journal of Environmental Management 70 (2004) 263273www.elsevier.com/locate/jenvman

    * Tel.: 260583837; fax: 260583833.

    E-mail address: [email protected] (G. Herath).

    http://www.elsevier.com/locate/jenvmanhttp://www.elsevier.com/locate/jenvman
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    for the stressed wetland systems. The key to successful

    wetland management is gaining a thorough understanding

    of the people and ecological processes unique to wetland

    systems and using this understanding in the design and

    implementation of appropriate management strategies.

    The realisation that traditional technocratic approaches

    may be incurring unnecessary costs and may not be

    optimising the benefits of wetland management has opened

    the door for the application of new concepts. By investing

    up front in understanding the wetland systems, costly

    mistakes and restoration measures may be avoided in the

    future. Wetland management is evolving into a multi

    objective management approach. Technical issues will not

    dominate decision-making but will provide inputs to a more

    democratic process of negotiations among various stake-

    holders. No single group such as irrigators, anglers,indigenous users control the agenda and the management

    agencies. The diffusion of power among a multitude of

    stakeholders means that agencies have increasingly less

    power to resolve conflicts by imposing a solution. An

    approach that can provide explicit information about

    community objectives, their tradeoffs and attitudes means

    that the conflicts can be better understood (Turner et al.,

    2000). Several participatory methods including question-

    naire surveys, telephone surveys, community workshops,

    public meetings, public comment opportunities have been

    used but have been criticised as inadequate. Most of theseexercises have been information gathering exercises rather

    than explicit involvement in decision-making.The main difficulty in implementing participatory

    approaches is the lack of tested methods, which could

    facilitate stakeholder negotiations and allow greater ana-

    lytical rigour. New techniques of multi-criteria decision

    analysis (MCDA) have been found to be particularly useful

    for improved wetland management. MCDA can simplify

    and structure the wetland management problem, facilitate

    explicit incorporation of multiple values and preferences of

    stakeholders in decision-making (RAC, 1992). A number of

    applications of MCDA have been reported in Australia.

    Assim and Hill (1997) applied MCDA techniques to

    evaluate alternative water management plans in the

    Murrumbidgee Irrigation Area and Districts. They foundMCDA to be useful in resolving tradeoffs between

    economic and environmental goals. Deng et al. (2002)

    used the Analytic Hierarchy Process (AHP) to evaluate

    tourism attributes in Victorian Parks in Australia. They

    ranked 36 selected state and national parks in Victoria into

    four levels, ranging from Grade 1 to Grade 4. Qureshi and

    Harrison (2000) used AHP to evaluate four riparian

    vegetation options for the Johnston River Catchment in

    North Queensland with five stakeholder groups. The use of

    prompt cards for pairwise comparisons is an innovative

    feature of this study. Proctor (2000) applied AHP to regional

    forest planning in Australia. The study focused on

    the Southern New South Wales forest region. Proctors(2000) study revealed that the two extreme forest use

    optionsthe conservation option and the timber industry

    option are preferred over the middle ground options.

    The specific objectives of this paper are to:

    Identify different stakeholder groups in the Wonga

    wetlands in the Murray River;

    Identify stakeholder objectives in wetland use;

    evaluate the relative importance of these objectivesamong stakeholders using the AHP and

    incorporate these public values into wetland manage-

    ment options to develop better management strategies.

    2. Multi-criteria decision analysis (MCDA)

    MCDA refers to a suite of techniques in which multiplevalues reflecting different objectives are quantified and used

    to provide a decision outcome, which reflects objectives

    broader than just economic objectives (Gregory, 2000). The

    important advantage of MCDA is that it can account for

    multiple criteria of assessment rather than a single criterion

    such as dollar values. The emphasis on MCDA alters

    wetland management from one that is dependent on

    hardware to one that depends on information. MCDA is a

    rational decision-making framework, which explicitly

    incorporates multiple objectives of decisions makers.

    MCDA improves communication and understanding

    among multiple decision makers and facilitate ways of

    reaching policy compromises. MCDA is concerned withsolving problems where there is a set of proposed options

    and several conflicting objectives. It allows the decision

    makers to rank objectives, resolve conflicts and identify

    areas of importance. It can be applied to a variety of

    environmental problems characterised by multiple goals.

    MCDA is a promising framework for evaluation sincethey have the potential to take into account conflicting,

    multidimensional, incommensurable and uncertain effects

    of decisions explicitly (Carbone et al., 2000; Munda, 2000;

    Omann, 2000). The most widely used multi-criteria

    methods include the AHP, Multi-attribute Utility Theory

    (MAUT), Multi-criteria Value Functions (MCVF), out-

    ranking theory and goal programming. The MAUT hasshortcomings. Russell et al. (2001) found mixed empirical

    evidence about whether MAUT improved the internal

    consistency of preference surveys. MAUT also assumes

    that decision alternatives follow a known probability

    distribution. The AHP has been widely applied for

    preference analysis in complex, multi-attribute problems

    (Varis, 1989).

    2.1. The analytic hierarchy process

    The AHP, developed by Saaty (1980) is a mathematical

    method for analysing complex decisions. It is a general

    theory of ratio scale measurement based on mathematicaland psychological foundations (Kangas, 1993). The AHP is

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    not grounded on any specific theoretical basis such as neo-

    Paretian welfare theory. What it does is to aggregate the

    separate performance indicators into an integrated perform-

    ance indicator (Bouma et al., 2000). The AHP facilitates a

    rigorous definition of priorities and preferences of decision

    makers and is useful in analysing decisions involving many

    stakeholders and multiple objectives (Saaty, 1980).

    In the case of wetlands, the overall goal is to achieve

    sustainable management. Criteria are then defined by which

    each option should be considered in meeting the objectives.

    Each criterion can have sub-criteria. Many options can be

    constructed each containing different levels of criteria that

    contributes to the overall objective. The AHP is based upon

    the construction of a series of pairwise comparison

    matrices, which compares criteria to one another. Selected

    stakeholders are asked to carry out the pairwise comparisonsof the identified criteria and sub-criteria. Each cell reveals

    the relative importance of an attribute compared to another.

    The quantitative weights for criteria are based on the

    decision makers qualitative comparison of all pairs of

    criteria. This provides a ranking or weighting of each of the

    criteria that describes the importance of each criterion to the

    overall objective. Weights to these sub-attributes are

    assessed using pairwise comparisons. The method is

    interactive where a stakeholder or a group of stakeholders

    indicate their preferences to the analyst. In this approach,

    the objectives of stakeholders are identified (e.g. biodiver-

    sity conservation, recreation, economic activities etc.)

    which may be further subdivided into a number of sub-

    criteria, and the pairwise comparison is repeated for each

    level of the hierarchy.

    In AHP data are obtained from the decision makers

    through pairwise comparisons among the elements at one

    level of the hierarchy with respect to an element in the next

    higher level. In making the comparisons, it is a question of

    which of the two attributes is more important and how much

    more important. The decision maker has the option of

    expressing his or her intensity of preference on a nine-point

    scale (Table 1). If two criteria are of equal importance, a

    value of 1 is given in the comparison, while 9 indicates the

    absolute importance of one criterion over the other. Withineach hierarchy there are three types of comparisons:

    (a) major categories are compared with each other, (b)

    criteria within these categories are compared to each other

    with respect to the categories, and (c) alternatives are

    compared to each other with respect to each criterion. The

    overall weights for each alternative are computed from the

    priority vectors of individual comparison matrices. AHP can

    deal with qualitative attributes as well as quantitative

    attributes. When applying AHP, a hierarchical decision

    schema is constructed by decomposing the decision

    problem into its decision elements. Numerical techniques

    are used to derive quantitative values from verbal

    comparisons (Kurttila et al., 2000).

    Pairwise comparison data can be analysed using either

    regression methods or the eigenvalue technique. In the

    eigenvalue technique, the reciprocal matrices of pairwise

    comparisons are constructed. Using these pair wisecomparisons, the parameters can be estimated. The right

    eigenvector of the largest eigenvalue of matrix A constitutes

    the estimation of relative importance of attributes (Eq. (1)),

    where bi is the importance or desirability of decision

    element i: In the AHP approach, the eigenvector is scaled to

    add up to 1 to obtain the weights.

    A aij

    1 b1=b2 b1=bn

    b2=b1 1 b2=bn

    bn=b1 bn=b2 1

    0BBBBBBBBB@

    1CCCCCCCCCA

    1

    Based on properties of reciprocal matrices, a consistency

    ratio (CR) can be calculated. Saaty (1977) has shown that

    the largest eigenvalue, gmax; of a reciprocal matrix A is

    always greater than or equal to n (number of rows or

    columns). If the pairwise comparisons do not include any

    inconsistencies, gmax n: The more consistent the com-

    parisons are, the closer the value of computed gmax to n: A

    consistency index CI, which measures the inconsistencies of

    pairwise comparisons is given in Eq. (2).

    CI gmax 2 n=n2 1 2

    A consistency ratio (CR), given in Eq. (3), measures thecoherence of the pairwise comparisons.

    CR 100CI=ACI 3

    where ACI is the average consistency index of the randomly

    generated comparisons. As a rule of thumb, a CR value of

    10% or less is considered as acceptable.

    The AHP offers a methodology to compare the

    publics relative values for conservation, recreation and

    business attributes of wetlands. The methodology has

    been extended to enable the use of AHP in group

    decision-making where the single decision maker is

    actually a group of people. AHP is an easier technique

    com pared t o M AUT and t he r es pons es are l essdemanding.

    Table 1

    Measurement scale of AHP

    Intensity of relative importance Definition

    1 Equal importance

    3 Weak importance of one over the other

    5 Essential or strong importance

    7 Demonstrated importance

    9 Absolute importance

    2, 4, 6 and 8 Intermediate values between

    two adjacent judgements

    Source: Saaty (1977).

    G. Herath / Journal of Environmental Management 70 (2004) 263273 265

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    Duke (2002) used AHP to examine public preferences for

    the environmental and agricultural attributes of farmland.

    There exist relatively few applications of AHP to environ-

    mental or natural resource problems. AHP is not a

    statistically based procedure and theoretically a sample

    size of one is enough to implement the AHP. Many studies

    used small number of experts or professionals. Peterson et al.

    (1994) used five respondents. Mawapanga and Debertin

    (1996) used 18 participants. This paper uses a large sample

    of stakeholders to investigate the preferences for wetland

    attributes and rank alternative management options.

    3. Application of AHP

    The practical application of AHP involves (a) structuringthe decision problem (b) identifying management options

    (c) identifying criteria (d) identifying the stakeholders and

    (e) developing the weighting schemes and ranking manage-

    ment options. These are briefly discussed in the sections

    below.

    3.1. Identifying stakeholders

    Stakeholders share a common interest or stake in the

    wetland. Stakeholders include policy makers, planners,

    administrators and others. The process of selection of

    stakeholders has to be open and transparent (Buchy

    and Hoverman, 2000). Grimble and Chan (1995) suggestthat stakeholders be initially identified through reputation,

    focus groups or demographic analysis. Harrison and Quershi

    (2000) suggest that the selection process should not be

    one-shot approach, but rather an iterative approach, where

    discussions with pre-identified stakeholders reveal other,

    previously unknown stakeholders. They also question the

    relevance of probability sampling in multicriteria analysis,

    where a greater recognition is given to qualitative aspects of

    the decision problem. A very large number of stakeholder

    groups however, make the elicitation exercise difficult

    (Harrison and Qureshi, 2000).

    3.2. Structuring the decision problem

    Identifying the stakeholders and structuring stakeholder

    objectives in wetland management require careful empirical

    investigation. Focus must be both on fundamental objec-

    tives, which are the attributes that stakeholders genuinely

    care about, and means objectives, which are ways to

    accomplish the fundamental objectives (Keeney, 1992).

    Objective hierarchies can be constructed using thisclassification.

    3.3. Identifying management options and criteria

    Management options are the available alternative actionsthat achieve some or all of the objectives of the decision

    problem. Often they are represented as discrete choices for

    easy evaluation. They can be identified from the policy

    documents or constructed to represent the stakeholder

    values (Keeney, 1992). Identifying a set of criteria or

    attributes is critical to evaluate preferences and alternative

    management plans. The criteria need to be reduced to a few

    key criteria, representing the major tradeoffs involved in any

    empirical application of the model. Participatory tools such

    as In-depth Groups (De Marchi et al., 1998), Negotiation

    Forums (Eastman et al., 1998), Focus Groups (Keeney et al.,

    1990; McDaniels and Roessler, 1998), and Citizens Juries

    (Crosby, 1996) can be effectively employed to elicit the

    most important criteria for a particular wetland. The main

    criteria could be aesthetic, environmental conservation,

    recreation, economic, social and cultural values.

    3.4. Weighting schemes

    Once the decision schema and stakeholder groups are

    chosen, the weights and preferences of different stakeholder

    groups should be determined. Two scenarios can bedeveloped (a) equal weights for all stakeholders or (b)

    unequal weights for stakeholders. In the case of unequal

    weights, the weights can be obtained from stakeholder

    groups themselves (self-assessed weights) or they can be

    determined by the government authority in charge of

    wetland management or assumed values used in combi-

    nation with sensitivity analysis.

    In group decision-making, Aczel and Saaty (1983)proved that the geometric mean is consistent with conditions

    for synthesis of judgments. If we have m individuals, acomposite judgment of their weights is the geometric mean.

    Using geometric means, a set of numerical values can be

    calculated to represent the relative degree of importance

    among the decision attributes. Also a set of numerical values

    can be computed to represent the relative importance of

    several individual judgments.

    4. Application of AHP to Wonga wetlands

    4.1. The Wonga wetlands

    The Wonga wetlands on the Murray River in Australia is

    a relatively small wetland but significant for its specific

    features. It has 108 ha including 80 ha of lagoons and

    diverse range of flora and fauna and limited recreational

    opportunities. The River Red Gum is a significant feature of

    the Wonga wetlands. In year 2000, nearly 110 bird species

    were sighted in the wetlands. During winter the Wonga

    wetland fills, from both the natural catchment but primarily

    from the wastewater treatment plant in Albury (which is a

    unique feature of the Wonga wetland). Many vertebrate

    species breed in the ephemeral areas, but in summer the

    wetland dries out which is important for waterbird breeding.In winter, the wetlands act as a reservoir to ensure that no

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    water is discharged into the Murray River. Visits to the

    wetlands are presently restricted for educational institutions

    and registered interest groups such as bird observers, field

    naturalists, photography/bushwalking groups (Wonga Wet-

    lands, 2001). These groups have availed themselves of this

    opportunity to experience a unique ecological laboratory in

    the area.

    Plans are underway for some nature-based investments inthe Wonga wetlands such as nature trails around the lagoon

    boardwalks, reception centre, bird hides, aboriginal camp-

    sites, and an interpretive centre. The proposed investments

    will cost several million dollars. Funds are being sought

    from the business community in Albury/Wodonga for these

    investments. The aim of these investments is to increase

    tourism flows and enhance nature-based experiences. They

    are also expected to generate an ecologically sustainablewetland. However, the dilemma the planners are facing can

    be easily understood from the following: A critical issue is

    to consider how to make this facility available to all those in

    the community who want to share the experience of a

    reconstituted riverine wetland, whilst minimising disturb-

    ance to the flora and fauna and any other adverse effects of

    these investments. (Wonga Wetlands, 2001). This state-

    ment reflects that the wetland management problem is a

    classic multi-attribute problem that can benefit from

    MCDA.

    4.2. Formulating the decision problem

    Many wetland management options can be developed

    which are different combinations of the criteria, whichcontribute to the attainment of the objectives of stake-

    holders. The existing option can be used as the base case to

    assess the other alternative options. The existing option is

    where no investments have been made as yet and 100% of

    the conservation value of the wetland is preserved and 2000

    recreation visitor days are available.

    The decision problem was cast as one involving the

    choice of the best wetland management plan for Wonga

    wetlands that optimally satisfies the stakeholders. Focus

    group interviews were conducted to obtain preliminary

    information on (a) different types of stakeholders (b) majorattributes of importance to stakeholders (c) wetland

    management options and (d) criteria to assess these

    alternative options. The focus groups revealed conservation,

    economic (any commercial advantages arising from adver-

    tising due to contributions made towards the investments

    referred to above) and recreational benefits by actually using

    the wetlands for visiting, walking etc. to be the three major

    objectives of stakeholders. The conservation objective

    reflects the desire to protect the wetland ecology. The

    investment objective reflects the desire of some to obtain

    any commercial potential that may be there in the

    redesigned wetland in terms of advertisements, business

    promotion etc. The recreation objective would capture theexperiential dimension and learning arising from the visits

    to the wetland. Each of these objectives can be reflected in

    several sub-attributes as shown in Table 2. For example the

    environmental attribute can be reflected in terms of the

    number of species of birds or the presence of the River Red

    Gum trees.

    Table 2 presents a useful objective hierarchy for the

    Wonga wetlands developed by examining relevant docu-

    ments, consultation with officials in the Albury City council

    and the focus group interviews. A decision model for the

    problem is given in Fig. 1. The model contains four levels:

    the most general objective of wetland management and

    planning is considered as maximising overall utility at level

    1. Level 2 consists of stakeholder groups. Three main

    stakeholder groups namely the conservation group (main

    objective is conservation of the wetland), and recreational

    user group (would like to maximise the recreational benefitsfrom the wetland) and small business groups (would like to

    benefit by providing investment funds to the City Council)

    are considered the most relevant for this analysis. Level 3

    gives the attributes of the decision problem. The attributes

    can be further subdivided into more detailed decision

    attributes. For example, the decision attribute wetland

    conservation could be decomposed into the extent of old

    River Red Gum reserved and/or the number of bird species

    protected. Level 4 consists of alternative wetland manage-

    ment options, which are different combinations of the three

    decision attributes.

    When there are a large number of indicators, pairwise

    comparisons may become tedious to the respondent andhence only the three most important attributes are

    considered. Hence only three indicators, one for each

    attribute was used for the options in order to keep the

    respondents task manageable. The attributes chosen for the

    conservation attribute was the percent of bird species. Only

    three management options were constructed for evaluation

    although theoretically many options can be developed.

    These were constructed taking into account the status quo as

    the base case (Option 1). The second option involved

    reducing the conservation objective and adding the business

    and recreation objectives as well. Some subjectivity is

    involved here and this was due to the non-availability of anyinformation on the trade offs involved among the three

    attributes. Thus a linear relationship is assumed among

    Table 2

    An objective hierarchy for the Wonga Wetlands

    Aim Goals Criteria

    Sustainable

    management

    of wetlands

    Economic goals Investment (returns from advertising

    and promotional effects)

    Conservation goals Ecosystem conservation protection

    of fauna and flora species

    Water qualityRecreational goals Visits educational values

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    the three attributes. Any business investment is considered

    to lead to a decline in the bird population and increase in

    visitor numbers and many respondents concurred with this

    observation. Changes were made to the base plan to obtain

    the other two options.1 A million dollar investment isconsidered 100% investment. An arbitrary 100% increment

    in investment was made in option 2 and this was assumed yo

    cause a 25% decline in the conservation value but will

    increase the number of visits to 5000. This is because

    business investment will produce other attractions as well

    and also will remove any limitations currently imposed on

    visitor numbers. While the direction of change in the

    attribute levels is logical, the extents are not since not much

    information is available to use a more objective approach.

    These can however be refined as and when more

    information is available.

    The number of bird species reflected conservation value,

    recreation is measured using recreation visitor days and

    investment is measured in terms of dollars but the indicator

    was the percent investment (one million dollars investment

    is considered 100% investment). Table 3 summarises the

    wetland management options hypothesised for the Wonga

    wetlands.

    4.3. Survey procedure

    Two hundred and sixty residents of Albury/Wodonga

    selected on a stratified random basis (stratified according to

    particular interest) were interviewed to reveal theircollective preferences for the Wonga wetlands using a

    pre-tested questionnaire. The pairwise questions were

    presented as follows:

    Preserving bird species is 1 2 3 4 5 6 7 8 9

    more important than business investment

    Business investment is 1 2 3 4 5 6 7 8 9

    more important than preserving bird species

    4

    The respondent is asked to choose the attribute that

    should be given more importance (or priority) and then to

    circle the appropriate strength of preference (either on the

    first or the second line) after referring to either the verbal or

    numerical preference scale. Then the attribute levels of the

    three hypothetical options were compared pair wise with

    respect to one attribute at a time. For example, the pairwise

    comparison of option 1 (OPT 1) and option 2 (OPT 2) with

    Fig. 1. A decision model to evaluate wetland use options.

    Table 3

    Wonga Wetlands management options

    Indicators Option 1 Option 2 Option 3

    Conservation value 100% 75% 90%

    Business investment ($ million) Nil $1.0 0.5

    Recreation visitor days 2000 5000 3500

    Extent of river red gum (percent area) 100% 75% 90%No. of bird species 110 82% 99%

    1

    Alternative management strategies can be based on simulation andoptimising models (Kangas et al. 2000) and they should take technical

    feasibility and national reserve criteria into account.

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    respect to conservation is as follows:

    OPT 1 is 1 2 3 4 5 6 7 8 9 more important than OPT 2 or

    OPT 2 is 1 2 3 4 5 6 7 8 9 more important than OPT 1

    5

    The above procedure is repeated for the other two

    attributes. An impact table or effects table, which details the

    consequences associated with the chosen level of decision

    attributes, is often used when making pairwise comparisons

    (Proctor, 2000). However, in this study development of a

    comprehensive impact table was not feasible mainly due to

    lack of data on critical inter-relationships.

    A total of 221 usable questionnaires were analysed. Some

    of the questionnaires wereremoved from the analysis because

    of interviewer perceptions that they were not satisfactory orthatthey areincomplete. Theconservation-orientedgroup was

    the largest with a total of 120 respondents; the business group

    came second with 65 respondents. The recreation group had a

    total of 36 respondents. The selection was made using the

    telephone directory for Albury/Wodonga. Each respondent

    was asked to classify himself into an appropriate group and

    this was used as the basis to allocate a given respondent into a

    particular group. Many of the respondents knew the Wonga

    wetlands and were aware of wetland functions. The survey

    also revealed that the investment plan of the city council was

    known by around 40% and the rest were unaware of the

    proposal. Most respondents found it easy to grasp the

    objectives of the survey because it is a small wetland andalmost everyone knew about it and its various features. Some

    respondents had difficulties in trading-off these attributes and

    qualities. Some of these difficulties are normal and often arise

    because some goods have public goods characteristics. After

    explaining the procedure the respondents were asked to make

    pair wise comparisons and rank the intensity of their

    preferences.

    4.4. The results

    The information on attributes and options were used to

    examine the preferences and goals among the population.

    The analysis revealed what sort of management optionswould be acceptable to the majority and is sustainable and

    how policy decisions could be modified to better suit theparticular wetland region.

    4.4.1. Pairwise comparisons

    Since the problem has been structured as a hierarchy, the

    relations between elements in succeeding levels are

    obtained by making pairwise comparisons The Expert

    Choice Computer Model was used to analyse the pairwise

    comparison. By using the eigenvalue technique in the AHP

    (Section 2), the weights, describing the importance of each

    attribute for a given stakeholder can be computed. These

    values are not presented in the paper due to spaceconsiderations. The values for a particular group are then

    summed and averaged over the sample to obtain the weights

    given in Table 4.

    Table 4 shows that overall for the business group, the

    weight of the investment attribute is 0.4847 compared to

    0.2544 for the visits attribute indicating that investment is

    almost twice as important as the recreation objective. A

    given attribute can also be compared across the differentstakeholder groups. For example, the environmental con-

    servation attribute has weights of 0.2604, 0.3520 and 0.6333

    for the business, recreation tourism and conservation

    groups, respectively. The AHP ranks the options based

    upon the pair wise comparisons. Table 5 provides the group

    analysis (where combined pair wise comparison of the

    groups is used) commonly referred to as the local priorities.

    The local priorities and ranking of the three management

    options in Table 5 show that for the business group, option 2

    and option 3 are ranked first and second, respectively. For

    the conservation group, option 1 and option 3 are ranked

    first and second, respectively. The recreation group rankedoption 3 and option 1 as the first and the second,

    respectively.

    Table 4

    Weights of decision objectives by Stakeholder Groups

    Weights

    Conservation Visits Investment

    Business group 0.2604 0.2544 0.4847

    Recreation group 0.3520 0.4060 0.2421

    Conservation group 0.6333 0.2088 0.1578

    Table 5

    Local priorities and ranking for wetland alternatives by Stakeholder Groups

    Alternative/group Business group Recreation

    group

    Conservation

    group

    Priority Rank Priority Rank Priority Rank

    Option 1 0.2520 3 0.3110 2 0.4040 1

    Option 2 0.3880 1 0.2690 3 0.2130 3

    Option 3 0.3600 2 0.4200 1 0.3820 2

    Fig. 2. Most preferred wetland options by groups.

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    The ranking of wetland management options by the three

    groups is given in Fig. 2. Fig. 2 gives the results of the

    individual analysis where the individual pairwise compari-

    sons are analysed and the results are then used to examine

    the distribution of the rankings. Fig. 2 shows that for the

    conservation group, close to 30% preferred option 1, 10%

    preferred option 2 and 12% preferred option 3. For the

    business group, 18% preferred option 2, 3% preferred

    option 1 and 4% preferred option 3. In the recreation group,

    9% preferred option 2, 2% option 1 and 1% option 3. When

    all groups are considered together, as shown in the fourth

    part ofFig. 2, 37% preferred option 1, 42% preferred option

    2 and 19% preferred option 3. These results show that the

    preferences for the options differ for the three groups. For

    the conservation groups, the predominant choice is option 1where no investment is made and 100% of the conservation

    value of the wetland is maintained. For the business group,

    the most preferred choice is option 2 where the maximum

    investment is made.

    The ranking of the options for the total sample is shown

    in Fig. 3 and Table 6. It shows that 26% of the conservation

    group preferred option 1 to option 2 and 3. In the business

    group, 16% preferred option 2 to option 3 and 1. Eight

    percent of the recreation group preferred option 2 to option

    1 and 3. When the total sample is considered 35% preferred

    option 2 over option 1 and 3.

    These results have important policy implications. Policy

    makers can strike a better balance between competing

    stakeholder interests thereby minimising conflicts. It is

    interesting to note that conservation of the wetlands was

    considered an overriding priority. Policy makers should

    give careful consideration to the conservation effort by

    further evaluating the extent of the conservation values that

    must be preserved. This is particularly so because of the

    small sized nature of the wetland. The business attribute was

    fairly important but the recreation attribute was the least

    important. This may be because alternative venues for

    recreation are easily available. The research indicates that

    the stakeholders should be closely involved as partners in

    decision-making and incorporating their preferences

    enhance the City Councils capacity to formulate better

    plans. The present study should provide a useful starting

    point for comparing the options for wetlands in a mean-

    ingful, systematic and stakeholder-focused way.

    4.4.2. Policy options

    The above scenarios do not provide the policy maker the

    final policy option AHP can be used to resolve such

    difficulties. Here the policy makers can impose their own

    preferences in obtaining the final option. In this case policy

    makers can use their own relative weights for the three

    stakeholder groups. These global priorities can be calculated

    on the basis of these weighting schema for the stakeholder

    Fig. 3. Ranking of wetland options by group.

    Table 7

    Global ranking of wetland options using different weighting schemes

    Weighting scheme Option Rank 836

    (i) Equal weighting (B:C:T) (0.33:0.33:0.33) Option 1 2

    Option 2 3

    Option 3 1

    (ii) (0.40:0.30:0.30) Option 1 2

    Option 2 3

    Option 3 1

    (iii) (0.53:0.23:0.23) Option 1 3

    Option 2 2

    Option 3 1

    (iv) (0.88:0.6:0.6) Option 1 3

    Option 2 1

    Option 3 2

    (v) (0.086:0. 828:0.086) Option 1 1

    Option 2 3Option 3 2

    Table 6

    Ranking of wetland management options by group

    Ranking Conservation

    group

    Business

    group

    Recreation

    group

    Total

    sample

    1 . 2 . 3 4 1 2 5

    1 . 3 . 2 26 2 3 32

    2 . 1 . 3 2 2 2 5

    2 . 3 . 1 8 16 8 35

    3 . 2 . 1 4 4 1 12

    3.

    1.

    2 6 1 2 6Total 50 26 18 94

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    groups, the importance of objectives from the point of view

    of the stakeholder groups and the relative priorities of

    decision alternatives with respect to the objectives. Follow-

    ing Kangas (1994), the global priority of a wetland

    management option can be given as:

    GPi X5j1

    LPSGjX3k1

    LPOkjLPMSik

    " #( )6

    where GPi is global priority of option i; LPSGj is local

    priority of stakeholder group j; LPOkj is local priority of

    objective k from the point of view of stakeholder group j;LPMSik is local priority option i with respect to objective k:

    Table 7 gives policy outcomes for a range of different

    weights for the stakeholder groups that policy makers can

    assign which are called the global priorities.

    We initiate the analysis assuming that a policy maker

    considers all three stakeholder groups to be equally

    important and hence assign equal weights of 0.33 for each

    group. The global rankings show that with equal weights,

    alternatives 1, 2 and 3, are ranked second, third and first,

    respectively. Thus a policy maker should adopt option 3 as

    the option that should be implemented. The weights are then

    changed by increasing the weights for the business group to

    0.4 and there is no change in the ranking due to this change.

    The weight for the business group is then changed until a

    change in the ranking occurs. This occurs when the weight

    for the business group is raised to 0.88. At this point option 2

    becomes the number one option. Hence if the policy maker

    believes that the business group is very important and that

    they would assign a weight of 0.88 or more, then option 2should be implemented. This is repeated for the conserva-

    tion group. When the weight for the conservation group is

    changed there is no change in the ranking until the weight is

    increased to 0.82. Hence if the conservation group is very

    important for the policy makers and that they like to assign a

    weight of 0.82 or more, then option 1 becomes the best

    option and should be implemented. With respect to

    Fig. 4. Performance sensitivity of options (business group).

    Fig. 5. Gradient sensitivity for conservation objective (business group).

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    the recreation group no increase of the weight from an initial

    equal weight scenario causes any change in the ranking.

    4.4.3. Sensitivity analysis of options

    Fig. 4 shows the response of the options with respect to

    each objective as well as overall objective for the business

    group. The y-axis in Fig. 4 gives each objectives priority

    (based on the decision-makers paired comparisons). For

    example, for the conservation and the recreation objective

    the best choice is option 3 and it means that option 3 is the

    most preferred only if we take one attribute say recreation or

    conservation. For the business group, the best option is

    option 2 if we take only the investment objective. Overall

    the best choice is option 2.

    Fig. 5 shows that when conservation has a weight of 0.2,

    option 2 is the best choice, and option 3 becomes the secondchoice for the business group. However, if the weight for the

    conservation attribute is 0.3, option 3 is the best choice and

    option 2 becomes the second choice. The results show how

    the different weights given to conservation attribute can

    change the options chosen and hence the sensitivity. The

    result shows that a minor change of the weight from 0.22 to

    say to 0.3 causes a change in the options selected showing a

    higher degree of sensitivity. If the weight changes to about

    0.6, then option 3 is the best choice. The sensitivity analysis

    can be repeated for the other stakeholder groups as well

    although they are not all reported here. The implication of

    high sensitivity is that the weights have to be more carefully

    assessed because even small errors can cause major errors inthe results.

    5. Concluding remarks

    Quantifying stakeholder preferences in wetland manage-

    ment is a complex task. This paper uses AHP in evaluating

    the planning options for the Wonga Wetlands in the Murray.

    The AHP permits explicit participation by stakeholders,which is important in dealing with situations where several

    stakeholder groups are present. This study shows that the

    conservation group will predominantly prefer option 1

    where no investment is made and the wetland is maintainedin its pristine condition. The business group predominantly

    prefers option 2 where maximum investment can be made.

    The recreation group predominantly prefers option 3 where

    some investment is also made. AHP can accommodate

    policy maker preferences as shown in this study especially

    where they have particular weights for the different

    stakeholder groups. It was shown that if the policy makers

    weigh heavily the concerns of the conservation group, and

    that they are prepared to assign a high weight above 0.82,

    then the policy maker should implement option 1 and no

    investment on the wetland should be considered. The

    success of the method depends on the way the decision

    problem is structured and how the pair wise comparisons arecarried out. It also depends on the ability of respondents

    providing credible answers to the questions posed. How-

    ever, many empirical studies on AHP are needed before we

    generalise its wider adoption.

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