Environmental impact assessment is widely recognized as an effective tool for supporting the sustainable development of the environment through policy, plan and program decision-making processes. Traditional approach of environmental impact assessment generally focuses on scientific analysis and neglects subjective utilities on the project development. This paper proposes a framework of environmental impact assessment process by integrating subjective perception and scientific analysis. This framework suggests that environmental impacts and their consequent effects are analyzed and calculated based on the inventory analysis, but the non-market loss arising from the construction of the sensitive facility is estimated by contingent valuation method and the relative importance of affecting groups in affecting the ongoing of project development is evaluated by analytical hierarchy process. Eventually, a mathematical model is presented to determine the optimal compensation amount under a targeted refusal rate. Also, a case example is presented to illustrate this approach that integrates the objectively scientific assessment for potentially environmental impacts and individual subjective perception on the non-market value of environmental damages arising from the project development.
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