Anne Schopp
This paper investigates the incentives of commercial banks for providing energy efficiency lending. Interviews were conducted with banks to model their decision making related to energy efficiency. The modelling shows the trade-off banks face between initial transaction cost and benefits from portfolio diversification. According to these findings, two aspects are important to upscale energy efficiency lending: first, the requirement for banks to monetise energy savings to account for the benefit of low risk in the lending portfolio and, second, the need for energy efficiency programmes to reach a certain scale so that energy efficiency lending pays off.
Themen: Energiewirtschaft
Keywords: Commercial banks, Energy efficiency lending, Portfolio diversification, Transaction cost
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