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Do Firms With Higher Energy Efficiency Have Better Access To Finance?, Philipp-Bastian Brutscher, Pauline Ravillard, Gregor Semieniuk
Do Firms With Higher Energy Efficiency Have Better Access To Finance?, Philipp-Bastian Brutscher, Pauline Ravillard, Gregor Semieniuk
PERI Working Papers
Improving energy efficiency quickly is key to mitigating climate change and a large part of such improvements has to be implemented in firms. But since most energy efficiency improvements require upfront investments, good access to external finance is important. Theory suggests that information asymmetries may prevent lenders from including energy efficiency into their lending assessment, even though higher energy efficiency makes a firm more cost- competitive and its collateral worth more, especially if stringent climate change mitigation plans are implemented. Empirically, little is known about the impact of energy efficiency on access to external finance. Here we examine for the …