Seminar (Dept. of Finance)

Title: Financing the Global Shift to Electric Mobility

Speaker: Bo Bian, Assistant Professor of Finance, University of British Columbia

Time: 10:00-11:30, Nov 24, 2023(Friday)

Venue: Room 1008, Mingde Business Building

ABSTRACT:

Using comprehensive auto loan data from Europe, we document a gap in financing terms between Electric Vehicles (EVs) and non-EVs. EVs, compared to non-electric models in the same car family or pair, are financed with higher interest rates, lower loan-to-value ratios, and shorter loan durations. We show that the primary driver of this EV financing gap is the technological risk associated with EVs. The rapid and uncertain evolution of EV technologies accelerates technology obsolescence, diminishing the resale value of EVs. In response, lenders charge higher interest rates on EV loans. Consumer demographics, lenders’ market power, and macroeconomic factors contribute minimally to the EV financing gap.

SHORT BIOGRAPHY:

Bo Bian is an assistant professor of finance at Sauder School of Business, University of British Columbia. Her research interests lie in Law and Finance, Innovation and Productivity, and Digital Economy. Her work has been published in the Review of Economics and Statistics.