Abstract

Environmentally harmful boiler rooms that use coal and liquid fuels (heavy fuel oil and heating oil) remain in operation across Serbian cities, either as parts of centralised systems or as stand-alone units. Although they significantly degrade air quality, their decommissioning is often delayed because feasibility studies indicate unfavourable financial outcomes. While greenhouse gas emissions can be monetised through emission trading schemes, no widely accepted method exists for valuing local air pollution in investment assessments. This paper proposes a fuzzy decision-making model that integrates financial, climate, and environmental criteria to support fuel-switching and decommissioning decisions. The model evaluates pollutant reductions, investment needs, and payback periods, converts them to fuzzy linguistic variables, and applies max–min composition for overall prioritisation. A case study of 25 boiler rooms in six Serbian cities demonstrates the approach. Results show that including environmental indicators highlights projects with substantial ecological benefits that would otherwise be overlooked under purely financial assessments.