In a recent work <Wu, 2003a, 2003b>, a dissipative nonlinear inertial Alfv¿n wave (DNIAW) were proposed as the physical explanation for the formation of the strong electric spikes often observed in the auroral ionosphere and the magnetosphere. DNIAW can also lead to the field_aligned electron acceleration. In the present paper, dynamical characteristics of DNIAW acceleration are discussed and its possible role in auroral electron acceleration is further investigated. The effective acceleration region for auroral electrons with energies of the order of keV produced by DNIAW acceleration is between 0.5 and 2.5 RE above the ionosphere, and the most efficient acceleration occurs around 0.8 RE where both the Alfv¿n velocity and the produced auroral electron energy peak, and the peak energy is around 10 keV. We suggest that this could explain the precipitous decrease of the auroral electron energy spectrum toward energies above 10 keV, which can be inferred from measurements of energy distribution of precipitating auroral electrons. Typical widths of auroral arcs caused by the DNIAW acceleration are in scales of the order of 1 km.