Review
Version 1
This version is not peer-reviewed
Green Finance in Property Assessed Clean Energy Programs
Version 1
: Received: 26 July 2024 / Approved: 27 July 2024 / Online: 30 July 2024 (11:51:43 CEST)
How to cite: Liaw, K. T. Green Finance in Property Assessed Clean Energy Programs. Preprints 2024, 2024072218. https://doi.org/10.20944/preprints202407.2218.v1 Liaw, K. T. Green Finance in Property Assessed Clean Energy Programs. Preprints 2024, 2024072218. https://doi.org/10.20944/preprints202407.2218.v1
Abstract
Property Assessed Clean Energy (PACE) programs finance energy efficiency and renewable energy improvements in residential and commercial properties with a special tax assessment added to property taxes. The paper surveys the literature and documents the quantitative estimates of environmental and economic benefits. The paper extends to discuss the securitization of PACE loans. The issuance of PACE green bonds frees up capacity for more PACE improvements. In addition, we summarize the concerns raised after the programs have been implemented. Those concerns include consumer protection, audit after program implementation, and lien-related risks for lenders. We highlight the challenges and discuss measures to continue to grow PACE financing. The success of PACE programs will contribute to mitigating climate change and to achieving the United Nations Sustainable Development Goals (SDGs).
Keywords
property assessed clean energy; sustainable development goals; green finance; energy efficient mortgages; environmental benefits; energy efficiency; securitization; green bonds
Subject
Business, Economics and Management, Finance
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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