Economic trade-offs in marine resource use between offshore wind farms and fisheries in Scottish waters

Abstract

The rapid expansion of offshore wind farms (OWFs) has prompted growing concerns about the extent to which competition over the marine resource causes trade-offs within the energy-food nexus. Reflecting this concern, the paper develops a novel marine resource allocation module which augments a computable general equilibrium (CGE) model, calibrated on Scottish data. This allows simulations with varying degrees of differential productivity of the marine resource across alternative uses. Simulation results with the model show that increasing OWFs can impose substantial negative impacts on seafood supply. Extensive analysis is undertaken to test the sensitivity of the model results to changes in the heterogeneity of the marine resource between sectors and the degree of substitution between capital and the marine resource in the competing sectors. The outcomes of this analysis support policies to develop the integrated management of food and energy production in the marine environment. This includes spatial integration and the use of tools such as co-location in policy implementation. They also highlight the potential for the substitution of capital for the marine resource in the OWF sector as a means of substantially reducing the negative impact on the Fishing sector.