Land use decision modeling with opportunity costs
Land use decision modeling with opportunity costs

Summary/Abstract: The purpose of this paper is to propose a model approach to the land development decision-making process that formally incorporates opportunity costs. Drawing on the experiences of municipalities in the Silesian Voivodeship regarding the analysis of post-industrial land development, the study used content analysis of project documents and the BPMN (Business Process Model and Notation) notation to develop an innovative decision process model. The research identified key required stages, including socio-economic analysis, social participation, financial efficiency analysis, and comprehensive economic and environmental analyses that quantify both costs and benefits. Crucially, the model mandates a systematic analysis of alternative options and introduces a formal decision gateway based on the acceptable level of quantified opportunity costs, including their often-neglected social and ecological dimensions. This framework offers a practical tool for decision-makers at the local government level, enabling a more holistic, sustainable, and economically optimal approach to land use planning by directly addressing the trade-offs inherent in resource allocation.

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