Value of information in multiple criteria decision making: an application to forest conservation

Developing environmental conservation plans involves assessing trade-offs between the benefits and costs of conservation. The benefits of conservation can be established with ecological inventories or estimated based on previously collected information. Conducting ecological inventories can be costly, and the additional information may not justify these costs. To clarify the value of these inventories, we investigate the multiple criteria value of information associated with the acquisition of improved ecological data. This information can be useful when informing the decision maker to acquire better information. We extend the concept of the value of information to a multiple criteria perspective. We consider value of information for both monetary and biodiversity criteria and do not assume any fixed budget limits. Two illustrative cases are used describe this method of evaluating the multiple criteria value of information. In the first case, we numerically evaluate the multiple criteria value of information for a single forest stand. In the second case, we present a forest planning case with four stands that describes the complex interactions between the decision maker’s preference information and the potential inventory options available. These example cases highlight the importance of examining the trade-offs when making conservation decisions. We provide a definition for the multiple criteria value of information and demonstrate the potential application when conservation issues conflict with monetary issues.