Seminar – Investments that make our homes greener: the role of regulation

Dr Lakshmi Naaraayanan, Assistant Professor of Finance, London Business School

The operation of residential buildings (our homes) is responsible for roughly 22% of the global energy consumption and 17% of the CO2 emissions. We study the effects of a regulatory intervention aiming to reduce carbon emissions by requiring privately rented properties to satisfy minimum energy efficiency standards. The regulation triggered significant investments in the rental sector. However, the environmental gains were smaller, limited by the use of more polluting energy sources. Regulatory interventions that target carbon emissions directly may be more effective in tackling the climate challenge.

Speaker bio

Dr Naaraayanan is currently an Assistant Professor of Finance at the London Business School, and his research interests lie in the area of empirical corporate finance – including sustainable investing and financial intermediation. His ongoing research focuses on understanding the challenges of climate transition facing companies, investors, and households. His research has been published in leading peer-reviewed academic journals, including the Journal of Financial Economics and the Review of Financial Studies. His research has won several awards, including the Moskowitz Prize for the Best Paper on Socially Responsible Investing, International Center for Pension Management Research Award, the European Investment Forum Research Award, USC Marshall School of Business Trefftzs Award at the Western Finance Association Meetings, among others. His work has been featured in leading media outlets such as the Financial Times, International Pensions Europe, Financial Express, Forbes, Oxford Business and Law, and the World Bank.

For more information, please contact Emily Brown.