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Auctioning Wind Power Sites when Environmental Quality Matters

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Author Info
Gervasio Ciaccia (Italian Authority for Electricity and Gas (AEEG) and Sapienza University of Rome)
Nicola Doni (University of Florence)
Fulvio Fontini () (University of Padua)

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Abstract

In this work we frame within auction theory an index that allows to order different projects for the construction of onshore wind energy plants and that explicitly takes into account their environmental quality. Wind farm projects are defined as vectors of attributes, encompassed in four categories: the technical properties of each project; its social impact; its environmental impact and the share of earnings that proponents offer to the collectivity in compensation for the negative externalities of the wind plant. We define an absolute index that allows to order different proposals and evaluate the acceptability of each project, providing the monetary value of each point and inducing a truthful revelation of firms' private information. Moreover, we calibrate the index, on the basis of a representative project and derive the corresponding iso-scoring curves.

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Publisher Info
Paper provided by Dipartimento di Scienze Economiche "Marco Fanno" in its series "Marco Fanno" Working Papers with number 0081.

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Length: 19 pages
Date of creation: 2008
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Handle: RePEc:pad:wpaper:0081

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Related research
Keywords: Renewable Energy Wind Power Scoring Rule Environmental Externalities

Find related papers by JEL classification:
Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
D4 - Microeconomics - - Market Structure and Pricing

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Strauss, J. & Thomas, D., 1995. "Empirical Modeling of Household and Family Decisions," Papers 95-12, RAND - Reprint Series.
  2. Udry, Christopher & Hoddinott, John & Alderman, Harold & Haddad, Lawrence, 1995. "Gender differentials in farm productivity: implications for household efficiency and agricultural policy," Food Policy, Elsevier, vol. 20(5), pages 407-423, October. [Downloadable!] (restricted)
  3. von Braun, Joachim & Rosegrant, Mark W. & Pandya-Lorch, Rajul & Cohen, Marc J. & Cline, Sarah A. & Brown, Mary Ashby & Bos, Maria Soledad, 2005. "New risks and opportunities for food security," 2020 vision briefs 73, International Food Policy Research Institute (IFPRI). [Downloadable!]
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