An and Pivo (2020)

An, Xudong, and Gary Pivo. “Green Buildings in Commercial Mortgage‐Backed Securities: The Effects of Leed and Energy Star Certification on Default Risk and Loan Terms.” Real Estate Economics, Vol. 48, Issue 1, 2020.

From the author’s abstract: “We study the impact of green building on loans in the CMBS market. A hazard model shows green buildings carry 34% less default risk, all else equal. A matched‐sample analysis gives similar results. We attribute the effect to a loan‐to‐value channel, where risk is lowered by a green price premium.”

Link: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3617160#