Opportunity between the turbines: Willingness-to-pay for co-location activities with an offshore wind farm

Abstract

With the expansion of offshore renewable energy, countries across the world are researching the different ways to maximize the space between wind turbines by coupling multiple maritime activities within the same ocean space. This technique is referred to as co-location and can result in economic and environmental benefits. Using data from a choice experiment and random utility modeling, this research quantifies public preferences for various co-location options within the lease area of a developing wind farm off Virginia’s coastline. Our estimates show that the average Virginia public household is willing-to-pay upwards of $20 per 1,000 acres for co-location activities. By comparing our results to estimated implementation and management costs of each activity, there is a strong indication that the benefits of co-location exceed the costs. The experimental design of this study can be applied to other offshore wind installments around the U.S. and abroad.