Novel analytical techniques for improved decision making Implications for consumers and institutions

Abstract

Information availability plays a key role in determining the choices of consumers, firms and governments.However, externalities associated with most commodities represent information failure leading toincorrect decisions. The emerging scientific advances nevertheless have produced several new analyticaltechniques that could guide towards better decisions. The objective of the paper is to review theexisting Iiterature on such analytical techniques and assess the appl icabi lity of such tools within the SriLankan context.

Literature in environmental management and economics related disciplines revealed that availabilityof techniques such as Life cycle assessment (LCA) and food mile analysis for consumer productswhile institution or firm level decision making could be guided by tools such as management costaccounting and sustainable chain management

LCA has often been used in evaluating environmental performances of different food production andfood packaging options, waste management and transport options. The information of such analyseshas been made available through product standards such as ISO 14040. Food mile is an indicator oftransport costs offood items which could provide important guidelines for transport policy, internationaltrade and product related environmental information for consume

The review elaborates on range of examples of application of such techniques over a wide range ofconsumer goods and services, institutions. The review reveals that although there seem to be sufficientanalytical techniques available worldwide, the applicability of such tools within Sri Lanka has beenvery sparse. LCA studies are only limited to two products and the ISO standards have not beenattempted yet. The study also highlights the need to improve the relevant data bases which wouldenable the rapid application of these tools and guide the decision maker towards sustainable directions.