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Optimal decision making on urban renewal projects

Yi‐Kai Juan (Department of Architecture, National Taiwan University of Science and Technology (NTUST), Taipei, Taiwan, and Center for Sustainable Development and Global Competitiveness, Stanford University, Stanford, California, USA)
Kathy O. Roper (Georgia Institute of Technology, Atlanta, Georgia, USA)
Daniel Castro‐Lacouture (Georgia Institute of Technology, Atlanta, Georgia, USA)
Jun Ha Kim (Kyung Hee University, Seoul, South Korea)

Management Decision

ISSN: 0025-1747

Article publication date: 9 March 2010

Abstract

Purpose

The aim of this paper is to present a systematic approach to provide decision makers in the Taipei City Government and private developers with an opportunity to review their decisions on urban renewal project selections, and to provide a model which could be adapted for other locations.

Design/methodology/approach

Porter's diamond model of competitive advantage is applied to establish evaluating criteria on urban competitiveness quality, and a fuzzy set theory combining the PROMETHEE method is used to determine the priority of projects. In assigning scores for urban sustainability, the expected return for each project is calculated for the economic dimension and a subjective scale has been used for the social and environmental dimensions. Genetic algorithms (GA) are introduced to search optimal solutions considering cost‐score tradeoffs for decisions on investment ratio determination and renewal type selection. The proposed approach is tested by evaluating 13 urban renewal projects in Taipei City.

Findings

The three‐stage model proposed by this study has established a comprehensive and systematic approach that considers key factors in urban renewal, assesses renewal projects from the standpoint of urban competitiveness and sustainability, and provides decision makers with helpful guidelines for investment.

Research limitations/implications

There is difficulty in re‐examining social and environmental issues of the city government's earlier decisions became decision makers did not fully consider these two issues at the beginning of the planning stage, which is a limitation of this research.

Originality/value

The results documented in the paper provide many other cities facing similar renewal decision problems with insightful strategies and useful implications.

Keywords

Citation

Juan, Y., Roper, K.O., Castro‐Lacouture, D. and Ha Kim, J. (2010), "Optimal decision making on urban renewal projects", Management Decision, Vol. 48 No. 2, pp. 207-224. https://doi.org/10.1108/00251741011022581

Publisher

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Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited