Analytic Hierarchy Process (AHP) is a form of
multi-criteria analysis (
see
Policy Briefing Note 6) that is used to analyse complex
decisions where multiple perspectives need to be considered. It was
developed by Saaty (1980) to help decisionmakers find the option that
best suits their goal and understanding of the
‘problem’, while taking into consideration factors
that cannot be quantified.
AHP is very flexible
and can be adapted to different needs and contexts. Criteria (or
attributes) and sub-criteria can be decided in advance by the expert or
through a participatory process with stakeholders to increase
transparency, dialogue and ownership of the process and outcome. There
is no upper limit to the number of criteria or sub-criteria, except for
the time that is required to do the comparison.
Criteria
can be both tangible and intangible and defining them can involve as
many participants as required. The number of alternatives to evaluate
can also vary, though they should be as mutually exclusive as possible.
The types of decision situations in which the AHP can be applied
include choices, ranking, prioritisation, resource allocation and
conflict resolution and clearly these have relevance in many areas of
climate adaptation.
A
series of steps are involved in undertaking the method (Saaty, 1980:
2005: 2008):
- Define the
‘problem’ or adaptation challenge, i.e. the need
and purpose of the decision (goal), listing the alternatives to
evaluate (e.g. adaptation options), setting-up the criteria and
sub-criteria (attributes) by which to evaluate the alternatives (or
adaptation options) and identifying the stakeholders and groups to
involve in the process.
- Structure the issue,
including the decision hierarchy, and identify the top-level criteria,
the intermediate criteria, and the set of options.
- Undertake
the pairwise comparison. This compares the elements to one another, two
at a time, with respect to their impact/ importance on an element above
them in the hierarchy. This uses numerical values (e.g. as in the scale
below) to conduct the pairwise comparisons, constructing a set of
pairwise comparison matrices. Several matrices are produced to compare
the alternatives (e.g. adaptation options) with respect to each
criteria, and the criteria with respect to the goal.
- Calculate
relative priorities. This can be done using a spreadsheet, or software,
such as ExpertChoice (http://expertchoice.com/).
The values in Step 3 are processed to obtain numerical priorities or
weights for the criteria and alternatives. Depending on the problem at
hand, a priority or weight can refer to importance, preference or
likelihood.
- Aggregate priorities. The final step is
to aggregate relative priorities to produce overall priorities (final
evaluation metrics) which sum to 1.0.