Iimi, Atsushi2013-09-262013-09-262013-06https://hdl.handle.net/10986/15845Competitive bidding is an important policy tool to procure goods and services from the market at the lowest possible cost. Under traditional public procurement systems, however, it may be difficult to purchase highly customized objects, such as energy efficiency services. This is because not only prices but also other nonmonetary aspects need to be taken into account. Multidimensional auctions are often used to evaluate multidimensional bids. This paper examines the bidding strategy in multidimensional auctions, using data from public energy service company projects in Japan. It shows that multidimensional auctions work well, as theory predicts. The competition effect is significant. In addition, strategic information disclosure, including walk-through and preannouncement of reserve prices, can also promote energy savings and investment. Risk sharing arrangements are critical in the energy service company market. In particular, the public sector should take regulatory risk.en-USCC BY 3.0 IGOACCOUNTINGAIRAIR CONDITIONINGAIR CONDITIONING SYSTEMSALLOCATIONALLOCATION MECHANISMANNUAL ENERGY SAVINGSAPPROACHASYMMETRIC INFORMATIONAUCTIONAUCTION SYSTEMAUCTIONSAVAILABILITYBALANCEBARREL OF CRUDEBIDBIDSBOILERSBONDBOND MARKETBONDSCALCULATIONCARBON DIOXIDECARBON DIOXIDE EMISSIONSCARBON PRICECARBON PRICESCLIMATECLIMATE CHANGECOCO2COGENERATIONCOMPETITIVE BIDDINGCONVERGENCECOST ESTIMATESCOST OF CARBONCOST OF ENERGYCOST-BENEFITCOST-BENEFIT ANALYSISCRUDE OILDEBTDEVELOPING COUNTRIESDISCOUNT RATEDUMMY VARIABLEDUMMY VARIABLESECONOMIC EFFICIENCYECONOMIC THEORYEFFICIENT LIGHTINGELECTRICITYELECTRICITY CONSUMPTIONELECTRICITY DEMANDELECTRICITY PRODUCERSELECTRICITY UTILITIESELIGIBLE INVESTMENTEMISSIONEMISSION REDUCTIONEMPLOYMENTENERGY AUDITENERGY AUDITINGENERGY AUDITSENERGY CONSERVATIONENERGY CONSUMPTIONENERGY COST SAVINGSENERGY COSTSENERGY DEMANDENERGY EFFICIENCYENERGY EFFICIENCY INVESTMENTSENERGY POLICYENERGY SAVING TECHNOLOGYENERGY SAVINGSENERGY SERVICEENERGY SERVICE COMPANIESENERGY SERVICESENERGY SOURCESENERGY SUPPLYENERGY USEENVIRONMENTAL BENEFITSENVIRONMENTAL PROTECTIONEQUIPMENTFINANCIAL MARKETSFINANCIAL RESOURCESFINANCIAL RISKFINANCIAL SERVICESFISCAL POLICYFLUORESCENT LIGHTSGAS UTILITIESGLOBAL GREENHOUSE GASGOVERNMENT EXPENDITUREGOVERNMENT SUBSIDIESGREENHOUSEGREENHOUSE GASGREENHOUSE GAS EMISSIONGREENHOUSE GAS EMISSION REDUCTIONGREENHOUSE GAS EMISSIONSGREENHOUSE GAS MITIGATIONHOT WATERHOT WATER BOILERHOT WATER BOILERSHUMAN RESOURCESIMPROVING ENERGY EFFICIENCYINFLATIONINFLATION RISKINFORMATION DISCLOSUREINSTITUTIONAL BARRIERSINSTRUMENTINTANGIBLEINTEREST RATEINTEREST RATE CHANGEINTEREST RATESINTERNATIONAL BANKINVESTMENT IN ENERGY EFFICIENCYINVESTMENT PERIODIPCCISSUANCELEGAL FRAMEWORKLOCAL BUSINESSLOCAL GOVERNMENTLOCAL GOVERNMENTSLONG-TERM INVESTMENTMARKET COMPETITIONNOXOILOIL EQUIVALENTPEAK DEMANDPHOTOVOLTAIC POWERPOLICY IMPLICATIONSPOLITICAL ECONOMYPOWERPPPRESENT VALUEPRICE CHANGESPRICE COMPETITIONPRICE ELASTICITYPRIVATE FINANCEPRIVATE INVESTMENTPROMOTING ENERGY EFFICIENCYPUBLIC FINANCERESERVERETROFITTINGRETURNRISK SHARINGSAVINGS RATESAVINGS SCHEMESSCENARIOSSOCIAL COST OF CARBONSOURCE OF ENERGYSOXSYNERGISTIC EFFECTTAXTRANSACTIONTRANSACTION COSTTRANSACTION COSTSTRANSPARENCYUNCERTAINTIESUNEPUTILITY FUNCTIONVALUE OF ENERGYVEHICLESVENTILATIONWEATHER CONDITIONSWORLD ENERGYWORLD ENERGY COUNCILmultidimensional auctionWorld Bank10.1596/1813-9450-6485