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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Main Author: K. Thomas Liaw
Format: Article
Language:English
Published: MDPI AG 2024-10-01
Series:Commodities
Subjects:
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).
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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