Characteristics of green loan users and the green policy mix

Anna Lucia Sobiech; Hirofumi Uchida

doi:10.1016/j.eneco.2025.108256

Characteristics of green loan users and the green policy mix

Anna Lucia Sobiech, Hirofumi Uchida

Finance (Business School)

Research output: Contribution to journal › Article › peer-review

Abstract

We analyse the usage of government-sponsored green loans under a feed-in-tariffs scheme and document a positive link with borrower financial health. Green loan users have better credit ratings, higher sales growth, and lower leverage. The link remains stable in face of significantly changing conditions for green investments and heightened policy uncertainty. Green loan users exhibit better ex-post performance and lower default probability. Results are in line with the notion that the screening undertaken by the lender matters for efficient green loan provision and highlight the important role of public loan programs in the green policy mix.

Original language	English
Article number	108256
Journal	Energy Economics
Volume	143
Early online date	1 Feb 2025
DOIs	https://doi.org/10.1016/j.eneco.2025.108256
Publication status	Published - 12 Feb 2025

Keywords

Green loans
Public loan programs
Feed-in-tariff
Loan screening

Access to Document

10.1016/j.eneco.2025.108256Licence: CC BY

Sobiech_2025_EE_Characteristics-green-loan_CC
Copyright © 2025 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
Final published version, 878 KBLicence: CC BY

Cite this

@article{b4b7b1eb24d74a83a8a7f18179843d3a,

title = "Characteristics of green loan users and the green policy mix",

abstract = "We analyse the usage of government-sponsored green loans under a feed-in-tariffs scheme and document a positive link with borrower financial health. Green loan users have better credit ratings, higher sales growth, and lower leverage. The link remains stable in face of significantly changing conditions for green investments and heightened policy uncertainty. Green loan users exhibit better ex-post performance and lower default probability. Results are in line with the notion that the screening undertaken by the lender matters for efficient green loan provision and highlight the important role of public loan programs in the green policy mix.",

keywords = "Green loans, Public loan programs, Feed-in-tariff, Loan screening",

author = "Sobiech, {Anna Lucia} and Hirofumi Uchida",

note = "Funding: This study is financially supported by Nomura School of Advanced Management and the JSPS KAKENHI Grant Numbers JP16H02027J and 20H01517.",

year = "2025",

month = feb,

day = "12",

doi = "10.1016/j.eneco.2025.108256",

language = "English",

volume = "143",

journal = "Energy Economics",

issn = "0140-9883",

publisher = "Elsevier",

}

TY - JOUR

T1 - Characteristics of green loan users and the green policy mix

AU - Sobiech, Anna Lucia

AU - Uchida, Hirofumi

N1 - Funding: This study is financially supported by Nomura School of Advanced Management and the JSPS KAKENHI Grant Numbers JP16H02027J and 20H01517.

PY - 2025/2/12

Y1 - 2025/2/12

N2 - We analyse the usage of government-sponsored green loans under a feed-in-tariffs scheme and document a positive link with borrower financial health. Green loan users have better credit ratings, higher sales growth, and lower leverage. The link remains stable in face of significantly changing conditions for green investments and heightened policy uncertainty. Green loan users exhibit better ex-post performance and lower default probability. Results are in line with the notion that the screening undertaken by the lender matters for efficient green loan provision and highlight the important role of public loan programs in the green policy mix.

AB - We analyse the usage of government-sponsored green loans under a feed-in-tariffs scheme and document a positive link with borrower financial health. Green loan users have better credit ratings, higher sales growth, and lower leverage. The link remains stable in face of significantly changing conditions for green investments and heightened policy uncertainty. Green loan users exhibit better ex-post performance and lower default probability. Results are in line with the notion that the screening undertaken by the lender matters for efficient green loan provision and highlight the important role of public loan programs in the green policy mix.

KW - Green loans

KW - Public loan programs

KW - Feed-in-tariff

KW - Loan screening

U2 - 10.1016/j.eneco.2025.108256

DO - 10.1016/j.eneco.2025.108256

M3 - Article

SN - 0140-9883

VL - 143

JO - Energy Economics

JF - Energy Economics

M1 - 108256

ER -

Characteristics of green loan users and the green policy mix

Abstract

Keywords

Access to Document

Fingerprint

Cite this