IDEAS home Printed from https://ideas.repec.org/a/eee/tefoso/v171y2021ics0040162521003711.html
   My bibliography  Save this article

Decision making under deep uncertainties: A review of the applicability of methods in practice

Author

Listed:
  • Stanton, Muriel C. Bonjean
  • Roelich, Katy

Abstract

Deep uncertainties like environmental and socio-economic changes create challenges to decision making. Decision Making under Deep Uncertainty (DMDU) methods are recognised approaches to navigate deep uncertainties and support robust and adaptable decisions. However, their ability to fully reflect the context in which these decisions are made has been criticised. This paper presents a synthesis across cases and methods to provide a holistic understanding of the application of DMDU methods to support long-term decision making. We carried out a structured literature review and analysed 37 infrastructure DMDU case studies. The analysis shows that DMDU methods are effective at developing plans to address a range of deep uncertainties and in some cases, reflecting the institutional context of the decision. However, they largely overlook the organisational and individual contexts in which decision making happens. We argue that the use of existing DMDU methods in practice should start with a better understanding of the institutional, organisational and individual contexts. We then suggest modifications to the applications of DMDU methods, i.e. internalising the context at different stages of the decision-making process and developing a decision typology to signpost decision makers to the best approach for a specific context.

Suggested Citation

  • Stanton, Muriel C. Bonjean & Roelich, Katy, 2021. "Decision making under deep uncertainties: A review of the applicability of methods in practice," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
  • Handle: RePEc:eee:tefoso:v:171:y:2021:i:c:s0040162521003711
    DOI: 10.1016/j.techfore.2021.120939
    as

    Download full text from publisher

    File URL: https://www.sciencedirect.com/science/article/pii/S0040162521003711
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.techfore.2021.120939?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Malekpour, Shirin & de Haan, Fjalar J. & Brown, Rebekah R., 2016. "A methodology to enable exploratory thinking in strategic planning," Technological Forecasting and Social Change, Elsevier, vol. 105(C), pages 192-202.
    2. Paul Cairney & Christopher M. Weible, 2017. "The new policy sciences: combining the cognitive science of choice, multiple theories of context, and basic and applied analysis," Policy Sciences, Springer;Society of Policy Sciences, vol. 50(4), pages 619-627, December.
    3. Thomas E. Downing, 2012. "Views of the frontiers in climate change adaptation economics," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 3(2), pages 161-170, March.
    4. Dittrich, Ruth & Wreford, Anita & Moran, Dominic, 2016. "A survey of decision-making approaches for climate change adaptation: Are robust methods the way forward?," Ecological Economics, Elsevier, vol. 122(C), pages 79-89.
    5. Warren E. Walker & Marjolijn Haasnoot & Jan H. Kwakkel, 2013. "Adapt or Perish: A Review of Planning Approaches for Adaptation under Deep Uncertainty," Sustainability, MDPI, vol. 5(3), pages 1-25, March.
    6. Greg Marsden & Noreen C. McDonald, 2019. "Institutional issues in planning for more uncertain futures," Transportation, Springer, vol. 46(4), pages 1075-1092, August.
    7. Katy Roelich & Jannik Giesekam, 2019. "Decision making under uncertainty in climate change mitigation: introducing multiple actor motivations, agency and influence," Climate Policy, Taylor & Francis Journals, vol. 19(2), pages 175-188, February.
    8. Stephen H Schneider & B. L. Turner & Holly Morehouse Garriga, 1998. "Imaginable surprise in global change science," Journal of Risk Research, Taylor & Francis Journals, vol. 1(2), pages 165-185, April.
    9. Peter Coals & Dawn Burnham & Paul J. Johnson & Andrew Loveridge & David W. Macdonald & Vivienne L. Williams & John A. Vucetich, 2019. "Deep Uncertainty, Public Reason, the Conservation of Biodiversity and the Regulation of Markets for Lion Skeletons," Sustainability, MDPI, vol. 11(18), pages 1-15, September.
    10. Robert J. Lempert & Myles T. Collins, 2007. "Managing the Risk of Uncertain Threshold Responses: Comparison of Robust, Optimum, and Precautionary Approaches," Risk Analysis, John Wiley & Sons, vol. 27(4), pages 1009-1026, August.
    11. Edward J. Oughton & Will Usher & Peter Tyler & Jim W. Hall, 2018. "Infrastructure as a Complex Adaptive System," Complexity, Hindawi, vol. 2018, pages 1-11, November.
    12. Lawrence, Judy & Haasnoot, Marjolijn, 2017. "What it took to catalyse uptake of dynamic adaptive pathways planning to address climate change uncertainty," Environmental Science & Policy, Elsevier, vol. 68(C), pages 47-57.
    13. Walker, Warren E. & Rahman, S. Adnan & Cave, Jonathan, 2001. "Adaptive policies, policy analysis, and policy-making," European Journal of Operational Research, Elsevier, vol. 128(2), pages 282-289, January.
    14. Jim W. Hall & Robert J. Lempert & Klaus Keller & Andrew Hackbarth & Christophe Mijere & David J. McInerney, 2012. "Robust Climate Policies Under Uncertainty: A Comparison of Robust Decision Making and Info‐Gap Methods," Risk Analysis, John Wiley & Sons, vol. 32(10), pages 1657-1672, October.
    15. Bonzanigo, Laura & Kalra, Nidhi, 2014. "Making informed investment decisions in an uncertain world : a short demonstration," Policy Research Working Paper Series 6765, The World Bank.
    16. Kalra, Nidhi & Hallegatte, Stephane & Lempert, Robert & Brown, Casey & Fozzard, Adrian & Gill, Stuart & Shah, Ankur, 2014. "Agreeing on robust decisions : new processes for decision making under deep uncertainty," Policy Research Working Paper Series 6906, The World Bank.
    17. Jaap C. J. Kwadijk & Marjolijn Haasnoot & Jan P. M. Mulder & Marco M. C. Hoogvliet & Ad B. M. Jeuken & Rob A. A. van der Krogt & Niels G. C. van Oostrom & Harry A. Schelfhout & Emiel H. van Velzen & H, 2010. "Using adaptation tipping points to prepare for climate change and sea level rise: a case study in the Netherlands," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 1(5), pages 729-740, September.
    18. Hallegatte, Stephane & Shah, Ankur & Lempert, Robert & Brown, Casey & Gill, Stuart, 2012. "Investment decision making under deep uncertainty -- application to climate change," Policy Research Working Paper Series 6193, The World Bank.
    19. Decker, Christopher, 2018. "Utility and regulatory decision-making under conditions of uncertainty: Balancing resilience and affordability," Utilities Policy, Elsevier, vol. 51(C), pages 51-60.
    20. J. Barnett & S. Graham & C. Mortreux & R. Fincher & E. Waters & A. Hurlimann, 2014. "A local coastal adaptation pathway," Nature Climate Change, Nature, vol. 4(12), pages 1103-1108, December.
    21. Francois Gusdorf & Stéphane Hallegatte & Alain Lahellec, 2007. "Time and space matter: how urban transitions create inequality," CIRED Working Papers hal-00522404, HAL.
    22. Stéphane Hallegatte, 2014. "Natural Disasters and Climate Change," Springer Books, Springer, edition 127, number 978-3-319-08933-1, October.
    23. Kalra,Nidhi Rajiv & Groves,David G. & Bonzanigo,Laura & Molina Perez,Edmundo & Ramos,Cayo & Brandon,Carter J. & Rodriguez Cabanillas,Iván, 2015. "Robust decision-making in the water sector: a strategy for implementing Lima?s long-term water resources master plan," Policy Research Working Paper Series 7439, The World Bank.
    24. Gorddard, Russell & Colloff, Matthew J. & Wise, Russell M. & Ware, Dan & Dunlop, Michael, 2016. "Values, rules and knowledge: Adaptation as change in the decision context," Environmental Science & Policy, Elsevier, vol. 57(C), pages 60-69.
    25. Warren E. Walker & Vincent A. W. J. Marchau & Jan H. Kwakkel, 2013. "Uncertainty in the Framework of Policy Analysis," International Series in Operations Research & Management Science, in: Wil A. H. Thissen & Warren E. Walker (ed.), Public Policy Analysis, edition 127, chapter 0, pages 215-261, Springer.
    26. Pieter Bloemen & Tim Reeder & Chris Zevenbergen & Jeroen Rijke & Ashley Kingsborough, 2018. "Lessons learned from applying adaptation pathways in flood risk management and challenges for the further development of this approach," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(7), pages 1083-1108, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paredes-Vergara, Matías & Palma-Behnke, Rodrigo & Haas, Jannik, 2024. "Characterizing decision making under deep uncertainty for model-based energy transitions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    2. Jackson, Canek & Pascual, Rodrigo & Mac Cawley, Alejandro & Godoy, Sergio, 2023. "Product–service system negotiation in aircraft lease contracts with option of disagreement," Journal of Air Transport Management, Elsevier, vol. 107(C).
    3. Farrow, Elissa, 2022. "Determining the human to AI workforce ratio – Exploring future organisational scenarios and the implications for anticipatory workforce planning," Technology in Society, Elsevier, vol. 68(C).
    4. Kahagalage, Sanath Darshana & Turan, Hasan Hüseyin & Elsawah, Sondoss & Gary, Michael Shayne, 2024. "Exploratory modelling and analysis to support decision-making under deep uncertainty: A case study from defence resource planning and asset management," Technological Forecasting and Social Change, Elsevier, vol. 200(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Moallemi, Enayat A. & Elsawah, Sondoss & Ryan, Michael J., 2020. "Robust decision making and Epoch–Era analysis: A comparison of two robustness frameworks for decision-making under uncertainty," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    2. Marjolijn Haasnoot & Maaike Aalst & Julie Rozenberg & Kathleen Dominique & John Matthews & Laurens M. Bouwer & Jarl Kind & N. LeRoy Poff, 2020. "Investments under non-stationarity: economic evaluation of adaptation pathways," Climatic Change, Springer, vol. 161(3), pages 451-463, August.
    3. Bhave, Ajay Gajanan & Conway, Declan & Dessai, Suraje & Stainforth, David A., 2017. "Barriers and opportunities for robust decision making approaches to support climate change adaptation in the developing world," LSE Research Online Documents on Economics 68318, London School of Economics and Political Science, LSE Library.
    4. Ram, Camelia, 2020. "Scenario presentation and scenario generation in multi-criteria assessments: An exploratory study," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    5. Pieter Bloemen & Tim Reeder & Chris Zevenbergen & Jeroen Rijke & Ashley Kingsborough, 2018. "Lessons learned from applying adaptation pathways in flood risk management and challenges for the further development of this approach," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 23(7), pages 1083-1108, October.
    6. Decker, Christopher, 2018. "Utility and regulatory decision-making under conditions of uncertainty: Balancing resilience and affordability," Utilities Policy, Elsevier, vol. 51(C), pages 51-60.
    7. Dittrich, Ruth & Wreford, Anita & Moran, Dominic, 2016. "A survey of decision-making approaches for climate change adaptation: Are robust methods the way forward?," Ecological Economics, Elsevier, vol. 122(C), pages 79-89.
    8. Moallemi, Enayat A. & Elsawah, Sondoss & Ryan, Michael J., 2020. "Strengthening ‘good’ modelling practices in robust decision support: A reporting guideline for combining multiple model-based methods," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 175(C), pages 3-24.
    9. Bethany Robinson & Jonathan D. Herman, 2019. "A framework for testing dynamic classification of vulnerable scenarios in ensemble water supply projections," Climatic Change, Springer, vol. 152(3), pages 431-448, March.
    10. Sierra C. Woodruff, 2016. "Planning for an unknowable future: uncertainty in climate change adaptation planning," Climatic Change, Springer, vol. 139(3), pages 445-459, December.
    11. Petra Tschakert & Jon Barnett & Neville Ellis & Carmen Lawrence & Nancy Tuana & Mark New & Carmen Elrick‐Barr & Ram Pandit & David Pannell, 2017. "Climate change and loss, as if people mattered: values, places, and experiences," Wiley Interdisciplinary Reviews: Climate Change, John Wiley & Sons, vol. 8(5), September.
    12. Judy Lawrence & Robert Bell & Adolf Stroombergen, 2019. "A Hybrid Process to Address Uncertainty and Changing Climate Risk in Coastal Areas Using Dynamic Adaptive Pathways Planning, Multi-Criteria Decision Analysis & Real Options Analysis: A New Zealand App," Sustainability, MDPI, vol. 11(2), pages 1-18, January.
    13. Viera, Oscar & Malekpour, Shirin, 2020. "An analysis of adaptive planning capacity: The case of chilean water utilities," Utilities Policy, Elsevier, vol. 65(C).
    14. Christoffer Carstens & Karin Mossberg Sonnek & Riitta Räty & Per Wikman-Svahn & Annika Carlsson-Kanyama & Jonathan Metzger, 2019. "Insights from Testing a Modified Dynamic Adaptive Policy Pathways Approach for Spatial Planning at the Municipal Level," Sustainability, MDPI, vol. 11(2), pages 1-16, January.
    15. Simona Mannucci & Federica Rosso & Alessandro D’Amico & Gabriele Bernardini & Michele Morganti, 2022. "Flood Resilience and Adaptation in the Built Environment: How Far along Are We?," Sustainability, MDPI, vol. 14(7), pages 1-22, March.
    16. Carmela Mariano & Marsia Marino & Giovanna Pisacane & Gianmaria Sannino, 2021. "Sea Level Rise and Coastal Impacts: Innovation and Improvement of the Local Urban Plan for a Climate-Proof Adaptation Strategy," Sustainability, MDPI, vol. 13(3), pages 1-21, February.
    17. Julia Reis & Julie Shortridge, 2020. "Impact of Uncertainty Parameter Distribution on Robust Decision Making Outcomes for Climate Change Adaptation under Deep Uncertainty," Risk Analysis, John Wiley & Sons, vol. 40(3), pages 494-511, March.
    18. Kalra, Nidhi & Hallegatte, Stephane & Lempert, Robert & Brown, Casey & Fozzard, Adrian & Gill, Stuart & Shah, Ankur, 2014. "Agreeing on robust decisions : new processes for decision making under deep uncertainty," Policy Research Working Paper Series 6906, The World Bank.
    19. Adam D. McCurdy & William R. Travis, 2017. "Simulated climate adaptation in stormwater systems: evaluating the efficiency of adaptation strategies," Environment Systems and Decisions, Springer, vol. 37(2), pages 214-229, June.
    20. Maddalen Mendizabal & Nieves Peña & Hans Hooyberghs & Griet Lambrechts & Joel Sepúlveda & Saioa Zorita, 2021. "Lessons Learned from Applying Adaptation Pathways in Heatwave Risk Management in Antwerp and Key Challenges for Further Development," Sustainability, MDPI, vol. 13(20), pages 1-23, October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:tefoso:v:171:y:2021:i:c:s0040162521003711. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/science/journal/00401625 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.