Method of investment projects evaluation for territorial communities taking into account the concept of sustainable development

Zaporizhzhia National University, Department of Economic Cybernetics, 66 Zhukovskogo Str., Zaporizhzhia, 69600, Ukraine

^* Corresponding author: maxishko@ukr.net

Abstract

The article is devoted to solving the problem of evaluation and selection of investment projects aimed at developing territorial communities, taking into account the concept of sustainable development. The problem of choosing from possible alternative solutions is not easy for decision makers and requires qualified justification. This is especially important in the context of decentralization reform, advancement of Ukraine towards society openness, increase of transparency requirements to the authorities and their results. Decision making on the basis of the sustainable development concept determines the evaluation of investment projects in terms of their effectiveness in solving problems of social, economic and environmental nature, finding a balance between these components. The peculiarity of the assessments is not so much quantitative as qualitative character, which makes it expedient to use the apparatus of fuzzy logic. The fuzzy model of evaluation of investment project aimed at developing a territorial community is constructed and substantiated in the work. The model is based on quantitative and qualitative evaluations of the social, economic and environmental components of the concept and enables a “soft” – qualitative evaluation of the investment project under consideration. Modeling results are based on the method of deciding on the choice of investment projects for the development of territorial communities. The proposed model and method are implemented by the Fuzzy Logic Toolbox application, were applied to substantiate decisions for the territorial community of Zaporizhzhia region, and can be used in the development of decision support systems to quantify the decisions and variant calculations.