Event study estimates for the carbon price announcement on the loan interest rates:

The results highlight household finance as a key new transmission channel of climate policy.

Further findings include:
1️⃣ Banks also shorten loan maturity, reduce amounts, and shift to linear repayments.
2️⃣ Households choose more fuel-efficient new cars.
3️⃣ Captive banks respond more strongly than commercial banks.
4️⃣ Collateral and default risk channels jointly explain these adjustments.

Exploiting cross-country variation within the same car models with a DiD design, we find that banks respond to Germany’s carbon price announcement by raising interest rates by 0.5 percentage points, with larger increases for loans on fuel-intensive vehicles and for longer maturities.

We study the impact of carbon pricing on household finance using 3.2 million observations of loans for internal combustion engine vehicles.

The results highlight household finance as a key new transmission channel of climate policy.

@pik-potsdam.bsky.social @humboldtuni.bsky.social

Event study estimates for the carbon price announcement on the loan interest rates:

If you're attending as well, we’d love to meet—come find us at our sessions or reach out! We are looking forward to the discussions and inspiring new ideas and insights. 💡
7/7
@nhhecon.bsky.social @humboldtuni.bsky.social @pik-potsdam.bsky.social

Maria Zioga presents: Evidence and drivers of decoupling economic growth from biodiversity degradation. (joint work with Maximilian Kotz).
#Biodiversity #decoupling
6/7👇

@lukasrischen.bsky.social presents: The Impact of Green Financial and Monetary Policy on the Low-Carbon Energy Transition: Global Empirical Evidence.
#EnergyTransition #GreenFinance
5/7👇

@achimhagen.bsky.social presents: Cooperation, inequality, and equity in the endogenous choice of institutions to provide public goods. (joint work with Lara Bartels and Carlo Gallier).
#EnvironmentalEconomics
4/7👇

@philipfliegel.bsky.social presents: The Impact of Carbon Pricing on the Credit Market: Evidence from securitized loans in the transportation sector. (joint work with Achim Hagen, Nicolas Koch, and Nolan Ritter).
#CarbonPricing
3/7👇

Marc-Philipp Bohnet presents: Not Just Knocking on Wood: The Short- and Long-Term Pricing of Deforestation Risk on Global Financial Markets (joint work with Philip Fliegel and Tycho Tax).
#Deforestation #TransitionRisk
2/7👇