Download RG_4-23-12_Offshore Fish and Energy

Offshore Fish and Energy
Resources
Dr. Robert Griffin
Marine Team, Natural Capital Project
Introduction
Background
• MS and PhD from University of Rhode Island
in Environmental and Natural Resource
Economics
• Dissertation – Auctions for Coastal Energy
Resources
• MS Thesis – Evaluating a Spatial Effort Quota
Market for Atlantic Herring
• NSF IGERT - Coastal Ecosystems
A Recent Project
• “Economic Evaluation of Co-Locating Aquaculture
and Wind Energy in the German North Sea”
• Initiated with an interdisciplinary group at AWI
and IMARE in Bremerhaven, Germany
• Prior research has shown biological, engineering
feasibility with blue mussels
• Interested in economic feasibility, production
complementarities, and likelihood of occurring
absent regulatory intervention
Motivation
A Co-located Mussel Farm
Methods
• Two separate firms to model, aquaculture and
wind energy
• Previous research on biological and
engineering
• Data Collection
• Discounted Cash Flow Analysis, no accounting
for ecosystem services currently
Results
• Both firms would enjoy significant net revenue
(>10% ROI) given current German subsidies
• Production complementarities exist (shared
costs - 30% for aquaculture, 2% for wind farm)
• Large differences in the scale of each firm, low
benefit with uncertain downside  little
incentive for wind farm