A framework based on statistical analysis and stakeholders' preferences to inform weighting in composite indicatorsShow others and affiliations
2021 (English)In: Environmental Modelling & Software, ISSN 1364-8152, E-ISSN 1873-6726, Vol. 145, article id 105208Article in journal (Refereed) Published
Abstract [en]
Composite Indicators (CIs, a.k.a. indices) are increasingly used as they can simplify interpretation of results by condensing the information of a plurality of underlying indicators in a single measure. This paper demonstrates that the strength of the correlations between the indicators is directly linked with their capacity to transfer information to the CI. A measure of information transfer from each indicator is proposed along with two weightoptimization methods, which allow the weights to be adjusted to achieve either a targeted or maximized information transfer. The tools presented in this paper are applied to a case study for resilience assessment of energy systems, demonstrating how they can support the tailored development of CIs. These findings enable analysts bridging the statistical properties of the index with the weighting preferences from the stakeholders. They can thus choose a weighting scheme and possibly modify the index while achieving a more consistent (by correlation) index.
Place, publisher, year, edition, pages
Elsevier BV , 2021. Vol. 145, article id 105208
Keywords [en]
Composite indicators, Index, Weights, Optimization, Resilience, Security of electricity supply, Sensitivity analysis
National Category
Economics
Identifiers
URN: urn:nbn:se:kth:diva-303762DOI: 10.1016/j.envsoft.2021.105208ISI: 000703667700003Scopus ID: 2-s2.0-85115789554OAI: oai:DiVA.org:kth-303762DiVA, id: diva2:1605972
Note
QC 20211026
2021-10-262021-10-262022-06-25Bibliographically approved