Private incentives for the emergence of co-production of offshore wind energy and mussel aquaculture

Technological solutions to increase the efficiency of spatial use can play a key role as part of the toolbox of marine spatial planning. Co-locating of multiple ocean uses can potentially increase the production and enjoyment of the ocean while limiting impacts. However, a basic precondition for co-locating or coproduction is that all parties' private incentives are aligned. We use a case study of co-locating an offshore wind energy firm and a mussel aquaculture firm to assess the incentive structure for cooperation and to demonstrate that social benefits from co-locating exist. We find that there is room for cooperation between firms based on potential cost sharing and that the demonstrated social benefits may arise without government intervention. (C) 2014 Elsevier B.V. All rights reserved.