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Auctioning Wind Power Sites when Environmental Quality Matters

Author

Listed:
  • Gervasio Ciaccia

    (Italian Authority for Electricity and Gas (AEEG) and Sapienza University of Rome)

  • Nicola Doni

    (University of Florence)

  • Fulvio Fontini

    (University of Padua)

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.

Suggested Citation

  • Gervasio Ciaccia & Nicola Doni & Fulvio Fontini, 2008. "Auctioning Wind Power Sites when Environmental Quality Matters," "Marco Fanno" Working Papers 0081, Dipartimento di Scienze Economiche "Marco Fanno".
    • Handle: RePEc:pad:wpaper:0081
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    Cited by:

    1. del Río, Pablo & Kiefer, Christoph P., 2023. "Academic research on renewable electricity auctions: Taking stock and looking forward," Energy Policy, Elsevier, vol. 173(C).
    2. Frank Hanssen & Roel May & Jiska van Dijk & Jan Ketil Rød, 2018. "Spatial Multi-Criteria Decision Analysis Tool Suite for Consensus-Based Siting of Renewable Energy Structures," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-28, September.
    3. Iglesias, Guillermo & del Río, Pablo & Dopico, Jesús Ángel, 2011. "Policy analysis of authorisation procedures for wind energy deployment in Spain," Energy Policy, Elsevier, vol. 39(7), pages 4067-4076, July.

    More about this item

    Keywords

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    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, Pricing, and Design

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