Benefits of Property Assessed Clean Energy Programs and Securitization of Property Assessed Clean Energy Loans
Property Assessed Clean Energy (PACE) programs finance energy efficiency and renewable energy improvements to residential and commercial properties with a special tax assessment added to property taxes. This paper surveys the literature and documents the quantitative estimates of the environmental a...
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MDPI AG
2024-10-01
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| Series: | Commodities |
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| Online Access: | https://www.mdpi.com/2813-2432/3/4/23 |
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| author | K. Thomas Liaw |
| author_facet | K. Thomas Liaw |
| author_sort | K. Thomas Liaw |
| collection | DOAJ |
| description | Property Assessed Clean Energy (PACE) programs finance energy efficiency and renewable energy improvements to residential and commercial properties with a special tax assessment added to property taxes. This paper surveys the literature and documents the quantitative estimates of the environmental and economic benefits. This 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 discuss those concerns and suggest measures to continue to grow PACE financing. The success of PACE programs will contribute to reducing carbon emissions, mitigating climate change and to achieving six of the seventeen United Nations Sustainable Development Goals (SDGs). |
| format | Article |
| id | doaj-art-1638e3bdaa7a4bbd9a3663d56643be68 |
| institution | DOAJ |
| issn | 2813-2432 |
| language | English |
| publishDate | 2024-10-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Commodities |
| spelling | doaj-art-1638e3bdaa7a4bbd9a3663d56643be682025-08-20T02:55:32ZengMDPI AGCommodities2813-24322024-10-013442143010.3390/commodities3040023Benefits of Property Assessed Clean Energy Programs and Securitization of Property Assessed Clean Energy LoansK. Thomas Liaw0Economics and Finance Department, Tobin College of Business, St. John’s University, 8000 Utopia Parkway, Queens, NY 11439, USAProperty Assessed Clean Energy (PACE) programs finance energy efficiency and renewable energy improvements to residential and commercial properties with a special tax assessment added to property taxes. This paper surveys the literature and documents the quantitative estimates of the environmental and economic benefits. This 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 discuss those concerns and suggest measures to continue to grow PACE financing. The success of PACE programs will contribute to reducing carbon emissions, mitigating climate change and to achieving six of the seventeen United Nations Sustainable Development Goals (SDGs).https://www.mdpi.com/2813-2432/3/4/23property assessed clean energysustainable development goalsenergy-efficient mortgagesenvironmental benefitsenergy efficiencysecuritization |
| spellingShingle | K. Thomas Liaw Benefits of Property Assessed Clean Energy Programs and Securitization of Property Assessed Clean Energy Loans Commodities property assessed clean energy sustainable development goals energy-efficient mortgages environmental benefits energy efficiency securitization |
| title | Benefits of Property Assessed Clean Energy Programs and Securitization of Property Assessed Clean Energy Loans |
| title_full | Benefits of Property Assessed Clean Energy Programs and Securitization of Property Assessed Clean Energy Loans |
| title_fullStr | Benefits of Property Assessed Clean Energy Programs and Securitization of Property Assessed Clean Energy Loans |
| title_full_unstemmed | Benefits of Property Assessed Clean Energy Programs and Securitization of Property Assessed Clean Energy Loans |
| title_short | Benefits of Property Assessed Clean Energy Programs and Securitization of Property Assessed Clean Energy Loans |
| title_sort | benefits of property assessed clean energy programs and securitization of property assessed clean energy loans |
| topic | property assessed clean energy sustainable development goals energy-efficient mortgages environmental benefits energy efficiency securitization |
| url | https://www.mdpi.com/2813-2432/3/4/23 |
| work_keys_str_mv | AT kthomasliaw benefitsofpropertyassessedcleanenergyprogramsandsecuritizationofpropertyassessedcleanenergyloans |