Guin, Benjamin, Korhonen, Perttu and Moktan, Sidharth (2022) Risk differentials between green and brown assets? Economics Letters, 213. ISSN 0165-1765
Full text not available from this repository.Abstract
We examine the relative riskiness of residential mortgages depending on the energy efficiency of the underlying property. Using a unique micro-level dataset in the UK, our analyses suggest that mortgages against energy-efficient properties are less frequently in payment arrears than mortgages against energy-inefficient properties. This result is robust to controlling for other relevant determinants of mortgage default including borrower income and loan-to-value (LTV). We conclude that the energy efficiency of a property is a relevant predictor of mortgage payment arrears. This result adds to the evidence base on risk differentials between green and brown assets.
| Item Type: | Article |
|---|---|
| Official URL: | https://www.sciencedirect.com/journal/economics-le... |
| Additional Information: | © 2022 The Bank of England |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HG Finance |
| JEL classification: | G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q4 - Energy > Q40 - General |
| Date Deposited: | 16 Mar 2022 10:42 |
| Last Modified: | 12 Dec 2024 02:54 |
| URI: | http://eprints.lse.ac.uk/id/eprint/114366 |
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