Alternative Energy Sources and Their Analysis as Investment Opportunities: A Case of the Czech Republic

Document Type: Review Paper

Authors

Department of Econometrics, University of Economics, Prague, Czech Republic

Abstract

Alternative energy sources and their efficient usage are currently a significant and widely discussed problem in all countries. The paper deals with the analysis of possible energy sources and their evaluation using multiple criteria decision making (MCDM) methods in specific conditions of the Czech Republic. The analysis aims at decision what alternative energy sources are suitable best for possible investments. The analysis uses TESES (technical, economic, social, ecological, strategic) classification of criteria. The total number of criteria considered in evaluation is 16, and five alternative renewable sources are defined. The evaluation is based on the crisp data set that describes the current situation in the Czech Republic. The most often applied MCDM methods (analytic hierarchy process, TOPSIS, and PROMETHEE class method, and the weighted sum approach) are used to compare the results. The differences in the obtained results by all methods are compared and discussed in detail. The main contribution of the study consists of a demonstration of applicability various decision-making techniques in the analysis of alternative energy sources. The results can be generalized not only for the specific conditions of the Czech Republic.

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