A spatial criterion as decision aid for capital projects: locating a sewage treatment plant in Halifax, Nova Scotia

Abstract

This paper describes a decision tool based on a domain criterion originally designed for games against nature. We employ this technique to analyse the locational choice of a sewage treatment plant in the city of Halifax, Nova Scotia, Canada. Based on cost considerations and using the data at hand, we show that only two of the original six locational choices remain as serious contenders, both being within less than one percent of the least-cost decision for a wide range of reasonable parameter values. We then discuss the general applicability of the technique.

Keywords:

• capital project selection
• decision analysis
• location
• sensitivity analyses