• Media type: E-Book
  • Title: Climate change risk and the costs of mortgage credit
  • Contributor: Nguyen, Duc Duy [VerfasserIn]; Ongena, Steven [VerfasserIn]; Qi, Shusen [VerfasserIn]; Sila, Vathunyoo [VerfasserIn]
  • imprint: Geneva: Swiss Finance Institute, 2020
  • Published in: Swiss Finance Institute: Research paper series ; 2020,97
  • Extent: 1 Online-Ressource (circa 46 Seiten); Illustrationen
  • Language: English
  • DOI: 10.2139/ssrn.3738234
  • Identifier:
  • Keywords: bank loans ; residential mortgage ; climate change risk ; sea level rise ; Graue Literatur
  • Origination:
  • Footnote:
  • Description: We show that lenders charge higher interest rates for mortgages on properties exposed to a greater risk of sea level rise (SLR). This SLR premium is not evident in short-term loans and is not related to borrowers’ short-term realized default or creditworthiness. Further, the SLR premium is smaller when the consequences of climate change are less salient and in areas with more climate change deniers. Overall, our results suggest that mortgage lenders view the risk of SLR as a long-term risk, and that attention and beliefs are potential channels through which SLR risk is priced in residential mortgage markets
  • Access State: Open Access