Date: Wednesday 5th/Nov/2025 at 11:00 AM Eastern Time 

Speaker: S. Lakshmi Naaraayanan (LBS) 

Paper Title: Green Mortgage (joint with Joao F. Cocco (LBS, CEPR), Bernardo Mendes (LBS)) 

Abstract: Using data on the universe of mortgages on offer (menu of contracts) in the United Kingdom, we study the prevalence and features of green mortgages, used for the financing of energy-efficient properties. We uncover substantial heterogeneity in their financial benefits. Products with preferential rate provide discounts of 9-35 basis points (annual gains of £180-700), while those with upfront cashback have annual equivalent gains of £49-56. The former (latter) are more prevalent in the investor (owner-occupier) segment of the mortgage market. We exploit market features to show that green mortgages with cashback offers are used for customer acquisition. We do not find support for the hypothesis that the benefits of green mortgages are due to lower financing risk.

Registration: https://us06web.zoom.us/webinar/register/WN_lNUE1eOlToaWpgNBRaOsAA