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.