Report: Lessons Learned from Auctions 1 & 2

By Benjamin Chee and Chantale LaCasse

This report, commissioned by the PAF and produced by NERA Economic Consulting, aims to compare and contrast the structure and results of the first two auctions.

This report features five articles:

  • Article I explains the two key elements of the PAF: A tradable put option for emission reductions combined with an online auction platform
  • Article II describes the program elements and design choices in each of the two auctions
  • Article III discusses participation and results across both auctions
  • Article IV provides key findings on the type of bidders, the relevance of proxy bidding, and the efficiency of each auction format in achieving desired clearing price and budget spending results
  • Article V provides a summary of the findings of the report