Li, Xinyu; Haan, Marco; Onderstal, Sander; Veldman, Jasper - 2023
Globally, governments increasingly rely on auctions to advance renewable energy. This paper studies the design of wind … renewable-energy production. While the theoretical analysis suggests that the price guarantee has no effect, our laboratory …, thus compromising auction efficiency. The subsidy is less effective than suggested by theory. Bidders with a higher …