Development of a computable general equilibrium model based on integrated macroeconomic framework for ocean multi-use between offshore wind farms and fishing activities in Scotland

Journal Article

Title: Development of a computable general equilibrium model based on integrated macroeconomic framework for ocean multi-use between offshore wind farms and fishing activities in Scotland

Author:

Qu, Y.; Hooper, T.; Austen, M.; Papathansopoulou, E.; Huang, J.; Yan, X.

Publication Date:

February 15, 2023

Journal:

Applied Energy

Volume:

332

Pages:

120529

Publisher:

Elsevier

Affiliation

Tsinghua University, Plymouth Marine Laboratory, University of Exeter, Joint Nature Conservation Committee (JNCC), University of the West of England, Bristol

Technology:

Wind Energy, Fixed Offshore Wind, Floating Offshore Wind

Receptor:

Human Dimensions, Fisheries, Social & Economic Data

Document Access

Website:

External Link

Citation

Qu, Y.; Hooper, T.; Austen, M.; Papathansopoulou, E.; Huang, J.; Yan, X. (2023). Development of a computable general equilibrium model based on integrated macroeconomic framework for ocean multi-use between offshore wind farms and fishing activities in Scotland. Applied Energy, 332, 120529. https://doi.org/10.1016/j.apenergy.2022.120529

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Abstract

The rapid development of offshore wind farms (OWFs) has raised concerns about the increasing conflicts and synergies with existing marine activities, especially the traditional fishery industry, from socioeconomic and environmental perspectives. Quantifying the conflicts and synergies require frameworks that can consider environment and economic systems simultaneously. This study builds on and extends a well-established computable general equilibrium (CGE) model to incorporate a natural capital and ecosystem service into the modelling framework, enabling a comprehensive analysis of the two-way interactions between the economy and natural environment. Our results suggest that expansion of OWFs has significant negative impacts on the seafood sectors, whereas fish stocks benefit slightly as fewer fish are harvested. Moreover, the increase in fish stocks due to the closed areas and artificial reef effect could bring benefits to the fishing sector, and pass onto the wider economy. The combined impacts of expansion of OWFs and increased fish stock demonstrate the potential benefits of multi-use of marine spaces by the OWFs and fishing activities. This modelling approach provides an illustration of the potential and importance of incorporating natural capital into CGE models in practice, which could be used for policy making regarding marine renewable energy and sustainable development planning in the marine environment.