The sustainability of urban renewal projects: a model for economic multi-criteria analysis
| Pages | 397-409 |
| Date | 03 July 2017 |
| Published date | 03 July 2017 |
| DOI | https://doi.org/10.1108/JPIF-01-2017-0003 |
| Author | Antonio Nesticò,Francesco Sica |
| Subject Matter | Property management & built environment,Real estate & property,Property valuation & finance |
The sustainability of urban
renewal projects: a model for
economic multi-criteria analysis
Antonio Nesticò
Department of Civil Engineering, University of Salerno, Fisciano, Italy, and
Francesco Sica
University of Salerno, Fisciano, Italy
Abstract
Purpose –The decisions taken today relating to urban renewal interventions are rarely supported by logical
and operational methodologies capable of effectively rationalising selection processes. For this purpose, it is
necessary to propose and implement analysis models with the aim of promotingthe sustainable development
of the territory. The purpose of this paper is to define a model for the optimal allocation of scarce resources.
Design/methodology/approach –The Discrete Linear Programming (DLP) is used for selecting
investments aimed at achieving financial, social, cultural and environmental sustainability.
Findings –The proposed model lends itself to the construction of investment plans on behalf of both types of
decision makers, of both a public and a private nature.
Research limitations/implications –All projects are evaluated according to multi-criteria logics, so that it
is possible to find compromise solutions, in accordance with the stakeholders’different preferences.
Practical implications –The model, written with A Mathematical Programming Language using DLP logics,
is tested –case study –so as to definean investment programme finalised for urban renewal of a vast area.
Social implications –The proposed econometric model makes it possible to obtain the optimal combination
of projects for urban renewal with a view to achieving the sustainable development of the territory.
Originality/value –Using the proposed model, all projects are evaluated according to multi-criteria logics,
so that it is possible to find compromise solutions, in accordance with the stakeholders’different preferences.
Keywords Sustainability, Urban renewal, Discrete Linear Programming (DLP),
Economic evaluation of projects, Multi-criteria analysis, Projects portfolio selection problems
Paper type Research paper
1. Abstract
Local governments are increasingly called upon to ensure the optimal allocation of scarce
resources at their disposal, relevant for proper territorial transformation and development.
This assumes particular interest with regards to investments made in urban areas, which
are essential to the government policies of such a complex system as that of the
contemporary city (Chan Edwin and Yung, 2004; Yi-Kai et al., 2010).
The decisions taken today relating to urban renewal interventions, that is for the
recovery of a valid qualitative and functional dimension in urbanistic and/or building
structures (Borri, 1985), are rarely supported by logical and operational methodologies
capable of effectively rationalising selection processes. For this purpose, it is necessary to
propose and implement analysis models with the aim of promoting the sustainable
development of the territory (Fusco Girard and Nijkamp, 1997; Mayer et al., 2005; Morano
and Nesticò, 2007; Chan and Lee, 2008; Hunt et al., 2008; De Mare et al., 2013).
In the present paper, a model of economic evaluation, which introduces original elements
correlated to its processing algorithms, specifically defined for enabling the optimal selection of
urban development projects, is written and tested by means of operational research.
2. Integrated evaluation models and urban renewal processes
The development of plans and projects req uires not only technical and design analysis, but also
economicevaluations capableof integrating aspectsof sustainability into the decision-making
Journal of Property Investment &
Finance
Vol. 35 No. 4, 2017
pp. 397-409
© Emerald PublishingLimited
1463-578X
DOI 10.1108/JPIF-01-2017-0003
Received 4 January 2017
Revised 29 January 2017
31 January 2017
Accepted 2 February 2017
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1463-578X.htm
397
Urban renewal
projects
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