On Reconciling Conflicting Goals: Applications of Multiobjective Programming

Abstract

This paper examines the problem of identifying cost-effective solutions to problems with multiple objectives. The traditional approach has been to minimize costs subject to feasibility constraints and a set of targets. In contrast, a multiobjective programming approach treats the objectives as choice variables and cost as a parameter. To illustrate the two approaches, we analyze the problem of achieving environmental objectives. The comparison reveals that the traditional cost-minimizing approach can generate solutions that are inefficient, in the sense that greater emission reductions could have been attained at the same cost. Because the solution sets to the two problems may differ, we derive conditions under which the two approaches yield a similar set of results.