Methodology for Integrated Socio-Economic Assessment of Offshore Platforms: Towards Facilitation of the Implementation of the Marine Strategy Framework Directive

Koundouri, Phoebe and Davila, Osiel and Stithou, Mavra and Babalos, Vassilios and Xepapadeas, Anastasios and Anastasiou, Ioannis and Antypas, Antonios and Kourogenis, Nikolaos and Mousoulides, Aris and Mousoulidou, Marianna and Ahrensberg, Nick and Zanuttigh, Barbara and Zagonari, Fabio and Lange, Manfred A. and Jimenez, Carlos and Charalambous, Elena and Rosen, Lars and Lindhe, Andreas and Norrman, Jenny and Diaz-Simal, Pedro and Guanche, Raul and de Bel, Mark and He, Wei and Kabdasli, Sedat and Elginöz, Nilay and Oguz, Elif and Bagci, Taylan and Bas, Bilge and Cantu, Matteo and Masotti, Matteo and Suffredini, Roberto and Stuiver, Marian (2013): Methodology for Integrated Socio-Economic Assessment of Offshore Platforms: Towards Facilitation of the Implementation of the Marine Strategy Framework Directive. Published in:

Abstract

In this paper a Methodology for Integrated Socio-Economic Assessment (MISEA) of the viability and sustainability of different designs of Multi-Use Offshore Platforms (MUOPs) is presented. MUOPs are designed for multi-use of ocean space for energy extraction (wind power production and wave energy), aquaculture and transport maritime services. The developed methodology allows identification, valuation and assessment of: the potential range of impacts of a number of feasible designs of MUOP investments, and the likely responses of those impacted by the investment project. This methodology provides decision-makers with a valuable decision tool to assess whether a MUOP project increases the overall social welfare and hence should be undertaken, under alternative specifications regarding its design, the discount rate and the stream of net benefits, if a Cost-Benefit Analysis (CBA) is to be followed or sensitivity analysis of selected criteria in a Multi-Criteria Decision Analysis (MCDA) framework. Such a methodology is also crucial for facilitating of the implementation of the Marine Strategy Framework Directive (MSFD adopted in June 2008) that aims to achieve good environmental status of the EU's marine waters by 2020 and to protect the resource base upon which marine-related economic and social activities depend. According to the MSFD each member state must draw up a program of cost-effective measures, while prior to any new measure an impact assessment which contains a detailed cost-benefit analysis of the proposed measures is required.

• Item Type: MPRA Paper
• Language: English
• Keywords: Multi-Use Offshore Platforms, Integrated Socio-Economic Assessment, Marine Strategy Framework Directive, Program of Measures, Cost-Benefit Analysis
• Subjects: C - Mathematical and Quantitative Methods > C0 - General; O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy; Y - Miscellaneous Categories > Y1 - Data: Tables and Charts > Y10 - Data: Tables and Charts

References

Antle, J.M. and R.O. Valdivia. 2010. TOA-MD Version 4: Minimum-Data Tradeoff Analysis Model. www.tradeoffs.oregonstate.edu.

Bennett, J. and Adamowicz, V., 2001. Some Fundamentals of Environmental Choice Modelling, In Bennett, J and R. Blamey (eds.): The Choice Modelling Approach to Environmental Valuation. Edward Elgar Publishing Limited, Cheltenham, (2001) pp. 37-69.

Bergland, O., Magnussen, K., Navrud, S., 1995. Benefit transfer: testing for accuracy and reliability. Discussion Paper#D-03/1995, Department of Economics and Social Sciences, The Agricultural University of Norway.

Birol, E., Koundouri, P. and Kountouris, Y., 2010. Assessing the economic viability of alternative water resources in water-scarce regions: Combining economic valuation, cost-benefit analysis and discounting, Ecological Economics, Elsevier, vol. 69(4), pages 839-847, February.

Birol, E., and P. Koundouri, 2008. Choice Experiments in Europe: Economic Theory and Applications, Edward-Elgar Publishing, Wally Oates and Henk Folmer's 'New Horizons in Environmental Economics' Series, ISBN: 9781845427252 (337pages).

Brigham E. and J. Houston, 2003. Fundamentals of Financial Management. 10th Edition, Cengage Learning, ISBN: 0324664559

Communities and Local Government, 2009. Multi-criteria analysis: A manual. Department for Communities and Local Government, London.

COM (Communication from the Commission), 2006. A European Strategy for Sustainable, Competitive and Secure Energy, 105, Brussels, 8.3.2006.

DEFRA (Department for Environment, Food and Rural Affairs), 2007. An introductory guide to valuing ecosystem services. Product code PB12852.

Eftec and Enveco, 2010. OSPAR Regional Economic and Social Assessment for the Marine Strategy Framework Directive – FINAL REPORT for DEFRA

Eftec, 1999. Review of Technical Guidance on Environmental Appraisal. Report for the Department of the Environment, Transport and the Regions: www.defra.gov.uk/environment/economics/rtgea/index.htm

Gollier, C., Koundouri, P. and T. Pantelides, 2008. Decreasing Discount Rates: Economic Justifications and Implications for Long-Run Policy. Economic Policy, 56: 758-795.

Koundouri, P, 2009. Editor’s Introduction, Special Issue on: Discounting the Long-Run Future and Sustainable Development. Economics-ejournal, Vol.3, July 16.

Lacroix, D. and Pioch, S. 2011. The multi-use in wind farm projects: more conflicts or a win-win opportunity? Aquat. Living Resour. 24, 129–135.

Marine Strategy Framework Directive (MSFD) Directive 2008/56/EC of the European Parliament and of the Council of 17 June 2008 establishing a framework for community action in the field of marine environmental policy . Rosenberger, R.S. and Loomis, J.B., 2000. Using meta-analysis for benefit transfer: in-sample convergent validity tests of an outdoor recreation database. Water Resources Research, 36, 1097-1107.

Silvenius, F. and Grönroos, J. 2003.Fish farming and the environment: Results and inventory analysis. Finnish Environment Institute, Helsinki.

Social Sciences Program, Bureau of Rural Sciences, Department of Agriculture, Fisheries and Forestry, Bureau of Transport and Regional Economics and Australian Bureau of Agricultural and Resource Economics, 2005. Socio-economic Impact Assessment Toolkit: A guide to assessing the socio-economic impacts of Marine Protected Areas in Australia. Prepared for the Australian Government Department of the Environment and Heritage.

Sørensen, H.C. and Naef, S., 2008, Report on technical specification of reference technologies (wave and tidal power plant), NEEDS New Energy Externalities Developments for Sustainability, Deliverable n° 16.1 - RS Ia.

Turner, R. K., Hadley, D., Luisetti, T., Lam V. W. Y. and W. W. L. Cheung, 2010. An Introduction to Socio-economic Assessment Within a Marine Strategy Framework. CSERGE, UEA, Published by the Department for Environment, Food and Rural Affairs.

UNEP, 1996, Life Cycle Assessment and How to Do It, United Nations Publication.

VESTAS, 2006, Life Cycle Assessment of offshore and onshore sited wind power plants based on V90-3.0 MW turbines.