The Bigger, the Better?

55 Pages Posted: 20 Apr 2020 Last revised: 21 Nov 2020

Date Written: March 2, 2020


I empirically investigate wind energy production dynamics and correlations to electricity prices on a turbine-individual level. I find that large turbine production outputs are less negatively correlated to electricity prices than those of small turbines. Apart from the fact that large turbines produce more and are less volatile in their production outputs over time, they sell electricity at a higher average price, outperforming their smaller peers. Additional tests on high-frequency data confirm these results and indicate that the financial impacts are large when considering short-term dynamics. These findings are important for investors to consider when allocating capital to alternative venues as renewable energy.

Keywords: Sustainable investing, climate finance, real assets, renewable energy

JEL Classification: G10, G20, Q50, Q48

Suggested Citation

Kronies, Alexander, The Bigger, the Better? (March 2, 2020). Available at SSRN: or

Alexander Kronies (Contact Author)

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000

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