Desmarais Global Finance Research Centre (DGFRC) Seminar: Jan Bena
Jan Bena
University of British Columbia
Financing the Global Shift to Electric Mobility
Date: Friday, September 5, 2025
Time: 10:30-11:45 am
Location: Bronfman Bldg. (1001 Sherbrooke St. West), Room 340
All are cordially invited to attend.
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.
