Debt for Brands: Tracking Down a Bias in Financing Photovoltaic Projects in Germany

Research output: Journal contributionsJournal articlesResearchpeer-review

Authors

What kinds of PV project configurations do lenders prefer to finance? Recent developments in the field of renewable energy project finance have reinforced the need for investigation, as fundraising has become more challenging and project evaluation by banks more demanding. To contribute to the limited research in this field, we focus on photovoltaic projects and report from an Adaptive Choice-Based Conjoint experiment with German experts in project finance. We find a bias which we call "debt for brands". Simulations reveal that debt investors prefer projects with premium brand technology (modules, inverters) to low-cost technology. Although we assumed that lenders prefer projects with the highest Debt Service Cover Ratio (DSCR), they favor projects with lower DSCR, as long as those projects include premium brand technology. We find that, if premium brands were engaged, lenders would also choose projects with higher risk. Our findings have implications for renewable energy project finance in practice and research.
Original languageEnglish
JournalJournal of Cleaner Production
Volume19
Issue number12
Pages (from-to)1356-1364
Number of pages9
ISSN0959-6526
DOIs
Publication statusPublished - 08.2011

Recently viewed

Publications

  1. Der Zentrale Runde Tisch der DDR: Wortprotokoll und Dokumente
  2. Grenzen von „Serious Games for Health“
  3. Intra-industry Adjustment to Import Competition
  4. Widerstand
  5. Lehrerqualität zwischen Kompetenz und Ethos
  6. The New European Public Country-by-Country-Reporting Requirement
  7. Losses and gains in translation
  8. De Publieksbijdrage
  9. Medienerziehung in Kindertagesstätten
  10. Anthropologie der Praxis
  11. Emerging Contaminants versus Micro-pollutants
  12. On Gender Statistics in the Art Field and Leading Positions in the International Sphere
  13. Introduction to the special issue:
  14. Analogue Nostalgia: Examining Critiques of Social Media
  15. Becoming Intimately Mobile
  16. Mit Hartz IV zum Aufbruch ins Erwerbsleben?
  17. A qualitative analysis of virtual patient descriptions in healthcare education based on a systematic literature review
  18. Liability rule failures? Evidence from german court decisions.
  19. Evaluating one-shot tournament predictions
  20. Environmental Management Accounting (EMA) as a Support for Cleaner Production
  21. Supporting wild pollinators in a temperate agricultural landscape
  22. Usually hated, sometimes loved:
  23. Erratum zu
  24. AI and urban governance: from the perils of smart cities to Amazon Inc. urbanism
  25. § 292 Haftung bei Herausgabepflicht
  26. Impact of Germany's recent space policy and progress towards a national legislation
  27. How do professional designers engage with sustainability?
  28. Charlotte Moth
  29. Aspects of Sustainability
  30. Eine Theorie der Integrität der Strafrechtspflege
  31. Heldentum ohne Gesinnung
  32. Extrusion benchmark 2009 experimental analysis of deflection in extrusion dies
  33. Weltorientierung fängt in der Kita an!
  34. Forming-induced damage and its effects on product properties
  35. Der lange Schatten fauler Kompromisse. Das Beispiel des Kongresses der USA
  36. Cradle-to-cradle design