Energy-efficient homes and mortgage risk: crossing the chasm at last?

Andrew R Sanderford, George A. Overstreet, Peter A. Beling, Kanshukan Rajaratnam

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

A topic of recent interest is energy-efficient houses. In the last twenty years, the US market has witnessed growth in the adoption of energy efficiency via various building technologies, design schemes, and eco-labels by developers, homebuilders, and homebuyers. Although housing and real estate scholars have begun explorations of the factors associated with the diffusion of energy efficiency, the subject has yet to be explored from the perspective of a critical stakeholder—the mortgage lender. This paper distinguishes itself from the extant literature in several ways. First, using a diffusion of innovation intellectual framework, the authors explore the role of the lender as an innovation gatekeeper. Second, as a review article, the authors summarize several key papers from the underwriting, credit scoring, and finance literature to help frame a number of market frictions that could mute further diffusion of energy efficiency in housing. Finally, the authors analyze these frictions and offer both market and public policy suggestions that may help overcome these frictions and increase opportunities for both private competitive advantage and market transparency.

Original languageEnglish (US)
Pages (from-to)157-168
Number of pages12
JournalEnvironment Systems and Decisions
Volume35
Issue number1
DOIs
StatePublished - 2015

Fingerprint

energy efficiency
market
friction
energy
innovation
transparency
finance

Keywords

  • Credit scoring
  • Mortgage loans
  • OR in environment and climate change
  • Risk management

ASJC Scopus subject areas

  • Environmental Science(all)

Cite this

Energy-efficient homes and mortgage risk : crossing the chasm at last? / Sanderford, Andrew R; Overstreet, George A.; Beling, Peter A.; Rajaratnam, Kanshukan.

In: Environment Systems and Decisions, Vol. 35, No. 1, 2015, p. 157-168.

Research output: Contribution to journalArticle

Sanderford, Andrew R ; Overstreet, George A. ; Beling, Peter A. ; Rajaratnam, Kanshukan. / Energy-efficient homes and mortgage risk : crossing the chasm at last?. In: Environment Systems and Decisions. 2015 ; Vol. 35, No. 1. pp. 157-168.
@article{0f96e0113eec46a182549fa6860b4099,
title = "Energy-efficient homes and mortgage risk: crossing the chasm at last?",
abstract = "A topic of recent interest is energy-efficient houses. In the last twenty years, the US market has witnessed growth in the adoption of energy efficiency via various building technologies, design schemes, and eco-labels by developers, homebuilders, and homebuyers. Although housing and real estate scholars have begun explorations of the factors associated with the diffusion of energy efficiency, the subject has yet to be explored from the perspective of a critical stakeholder—the mortgage lender. This paper distinguishes itself from the extant literature in several ways. First, using a diffusion of innovation intellectual framework, the authors explore the role of the lender as an innovation gatekeeper. Second, as a review article, the authors summarize several key papers from the underwriting, credit scoring, and finance literature to help frame a number of market frictions that could mute further diffusion of energy efficiency in housing. Finally, the authors analyze these frictions and offer both market and public policy suggestions that may help overcome these frictions and increase opportunities for both private competitive advantage and market transparency.",
keywords = "Credit scoring, Mortgage loans, OR in environment and climate change, Risk management",
author = "Sanderford, {Andrew R} and Overstreet, {George A.} and Beling, {Peter A.} and Kanshukan Rajaratnam",
year = "2015",
doi = "10.1007/s10669-015-9535-8",
language = "English (US)",
volume = "35",
pages = "157--168",
journal = "Environment Systems and Decisions",
issn = "2194-5403",
publisher = "Springer Science + Business Media",
number = "1",

}

TY - JOUR

T1 - Energy-efficient homes and mortgage risk

T2 - crossing the chasm at last?

AU - Sanderford, Andrew R

AU - Overstreet, George A.

AU - Beling, Peter A.

AU - Rajaratnam, Kanshukan

PY - 2015

Y1 - 2015

N2 - A topic of recent interest is energy-efficient houses. In the last twenty years, the US market has witnessed growth in the adoption of energy efficiency via various building technologies, design schemes, and eco-labels by developers, homebuilders, and homebuyers. Although housing and real estate scholars have begun explorations of the factors associated with the diffusion of energy efficiency, the subject has yet to be explored from the perspective of a critical stakeholder—the mortgage lender. This paper distinguishes itself from the extant literature in several ways. First, using a diffusion of innovation intellectual framework, the authors explore the role of the lender as an innovation gatekeeper. Second, as a review article, the authors summarize several key papers from the underwriting, credit scoring, and finance literature to help frame a number of market frictions that could mute further diffusion of energy efficiency in housing. Finally, the authors analyze these frictions and offer both market and public policy suggestions that may help overcome these frictions and increase opportunities for both private competitive advantage and market transparency.

AB - A topic of recent interest is energy-efficient houses. In the last twenty years, the US market has witnessed growth in the adoption of energy efficiency via various building technologies, design schemes, and eco-labels by developers, homebuilders, and homebuyers. Although housing and real estate scholars have begun explorations of the factors associated with the diffusion of energy efficiency, the subject has yet to be explored from the perspective of a critical stakeholder—the mortgage lender. This paper distinguishes itself from the extant literature in several ways. First, using a diffusion of innovation intellectual framework, the authors explore the role of the lender as an innovation gatekeeper. Second, as a review article, the authors summarize several key papers from the underwriting, credit scoring, and finance literature to help frame a number of market frictions that could mute further diffusion of energy efficiency in housing. Finally, the authors analyze these frictions and offer both market and public policy suggestions that may help overcome these frictions and increase opportunities for both private competitive advantage and market transparency.

KW - Credit scoring

KW - Mortgage loans

KW - OR in environment and climate change

KW - Risk management

UR - http://www.scopus.com/inward/record.url?scp=84925487777&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84925487777&partnerID=8YFLogxK

U2 - 10.1007/s10669-015-9535-8

DO - 10.1007/s10669-015-9535-8

M3 - Article

AN - SCOPUS:84925487777

VL - 35

SP - 157

EP - 168

JO - Environment Systems and Decisions

JF - Environment Systems and Decisions

SN - 2194-5403

IS - 1

ER -