Finance Seminar with Jan Bena, The University of British Columbia (Sauder School of Business)

The Department of Finance is proud to announce the upcoming seminar with Jan Bena, The University of British Columbia.

Jan Bena will present: Financing the Global Shift to Electric Mobility

Abstract:
Using comprehensive auto loan data, we find that early-stage electric vehicles (EVs), compared to their internal combustion engine counterparts within the same model series, are financed with higher interest rates, lower loan-to-value ratios, and shorter durations. This financing gap is driven by lower and more volatile resale values of early-stage EVs, stemming from rapid technological advancements in EV-specific technologies. This technological obsolescence raises collateral risk, leading to tighter loan terms. Other factors, such as buyer preferences, socioeconomic traits, government incentives, and macroeconomic conditions, have minimal impact. Our findings show that technological carbon-transition risks are reflected in household finance products.

Location:
Solbjerg Plads 3
2000 Frederiksberg
Room: SPs07