Conservation Economics: Evaluating Trade-offs in Offshore Wind Farm Development

Project Description:

This PhD scholarship is supported by the National Federation of Fishermen’s Organisations and is part of a PhD Research Cluster focusing on Energy Economics.

Offshore wind energy offers a promising solution for sustainable and renewable power generation, with the key advantage of not competing for land resources like onshore wind farms. However, the unprecedented spatial squeeze resulting from its expansion presents complex economic, environmental, and social challenges. While it brings long-term benefits, such as reducing greenhouse gas emissions and supporting marine ecosystem health, it also risks conflicts with existing maritime activities, including fishing, conservation and shipping. A thorough understanding of the socioeconomic and cultural impacts of offshore wind is essential for developing effective mitigation strategies and adaptive management efforts.

Methodology

Wind turbines often face opposition from residents due to their space requirements, as well as potential noise and visual disruptions (Meyerhoff et al., 2010). In response to these concerns, offshore wind farms are typically located away from densely populated regions, often situated at sea. Economic valuation research has revealed varying perspectives on offshore wind energy development, with some studies highlighting its economic and environmental benefits while others emphasize potential drawbacks, particularly for local communities and traditional industries (Ladenburg, 2010).

As offshore wind energy expands, it is essential to consider its broader socio-economic dimensions to ensure balanced and sustainable outcomes. Key factors include the short- and long-term economic impacts on traditional industries such as commercial fishing, the economic value of ecosystem services gained or lost due to offshore wind energy expansion (Snyder and Kaiser, 2009), and the equitable distribution of economic benefits among marine stakeholders and opinion-holders (Willis-Norton et al., 2024). Understanding these dynamics is critical for informing policy decisions that mitigate negative externalities while maximizing the economic potential of offshore renewable energy.

This PhD project aims to conduct a comprehensive economic analysis of offshore wind energy’s impact on fisheries, coastal economies, and marine ecosystem services, offering valuable insights for policymakers and industry stakeholders. By empirically assessing both the direct and indirect effects on key industries such as commercial fishing and tourism, this study seeks to enhance our understanding of the economic trade-offs associated with offshore wind development. To achieve this, the research will address the following key questions:

• What are the short- and long-term economic impacts of offshore wind farms on commercial fishing industries?
• What is the economic value of ecosystem services gained or lost due to offshore wind energy expansion?
• How can economic incentives and policy mechanisms be designed to ensure a fair distribution of economic gains and address the concerns of various maritime stakeholders?

To empirically assess these issues, we will utilise a combination of primary and secondary data sources to quantify the direct and indirect effects of offshore wind farms on the marine economy and employment. The precise methodology employed will be developed depending on the direction the student (in discussion with the supervisory team) wishes to take.

If you have any queries about the project, please contact Dr Magnus Johnson via M.Johnson@hull.ac.uk.  You may also address queries about the CDT to auracdt@hull.ac.uk.