IDEAS home Printed from https://ideas.repec.org/a/wly/emetrp/v94y2026i3p767-810.html

Holding up Green Energy: Counterparty Risk in the Indian Solar Power Market

Author

Listed:
  • Nicholas Ryan

Abstract

This paper studies how the risk of hold‐up affects procurement. I use data on the universe of solar power auctions in India. The Indian context allows clean estimates of counterparty risk, because solar plants set up in the same states, by the same firms, are procured in auctions intermediated by either risky states themselves or the trusted central government. I find that the counterparty risk of an average state increases solar prices by 10%. This risk premium sharply reduces investment, because demand for green energy is elastic. Contract intermediation by the central government eliminates the counterparty risk premium.

Suggested Citation

  • Nicholas Ryan, 2026. "Holding up Green Energy: Counterparty Risk in the Indian Solar Power Market," Econometrica, Econometric Society, vol. 94(3), pages 767-810, May.
    • Handle: RePEc:wly:emetrp:v:94:y:2026:i:3:p:767-810
    DOI: 10.3982/ECTA21084
    as

    Download full text from publisher

    File URL: https://doi.org/10.3982/ECTA21084
    Download Restriction: no
    File URL: https://libkey.io/10.3982/ECTA21084?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:emetrp:v:94:y:2026:i:3:p:767-810. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/essssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.