A Multi-Criteria Framework for Economic Decision Support in Urban Sustainability: Comparative Insights from European Cities
Emre Kadir Özekenci
Abstract
Sustainable urban development has become an economic imperative as cities grapple with escalating environmental, social, and financial pressures. This study evaluates the economic performance and fiscal sustainability of European capitals—Stockholm, Oslo, Copenhagen, Lahti, London, Berlin, Madrid, Paris, Amsterdam, and İstanbul—through a robust Multi-Criteria Decision-Making (MCDM) framework. The analysis incorporates twelve key indicators that reflect not only environmental resilience but also resource efficiency, infrastructure investment, and the economic viability of sustainability policies. These include Scope 1 Emissions, Consumption-Based GHG Emissions, Particulate Air Pollution, Open Public Space, Road Infrastructure Efficiency, Sustainable Transport, Vehicle Dependence, Water Access, Water Consumption, Solid Waste Generated, Climate Change Resilience, and Sustainable Policy Implementation. A hybrid MCDM model combining MEREC-based RAWEC with Extended AROMAN and MARA methods was applied. The MEREC method was used to derive economically weighted priorities among criteria, while final rankings were aggregated using RAWEC, Extended AROMAN, MARA, and Borda Count methods. Results identified Scope 1 emissions as the most economically impactful criterion, while particulate air pollution had a lower fiscal weighting. Cities such as Stockholm, Oslo, and Copenhagen consistently emerged as top performers due to their cost-effective and forward-looking urban sustainability policies. In contrast, Paris, İstanbul, and Amsterdam demonstrated lower cost-efficiency scores. Sensitivity analysis further validated the model's reliability. This framework not only supports environmental assessment but also informs economic decision-making by guiding policymakers toward fiscally responsible and sustainable urban planning strategies.