Green Mortgages, EU Taxonomy and Environment Risk Weighted Assets: A Key Link for the Transition

Round 1

Reviewer 1 Report

Green mortgages, EU Taxonomy and Environment Risk Weigthed Assets: a Key Link for the Transition

 

• Line 3: Please check the Weigthed spelling in the title.
• Line 32: Do not use the abbreviation EU without full words.
• Line 48: what is UE?
• In the introduction section, the authors write the background and motivation of the study, but the objective and contribution of the study are missing. It is important to revise the introduction as per the above comment.
• In the literature review, the authors only discuss the previous studies and did not link the studied variables with the economic theories.
• The methodology section is well written, the authors need to justify the choice of their variables and chosen methods.
• The results & discussion section need further improvement. Some important relevant studies are not cited so reviewer suggest the authors to read and cite these papers.

1. Gao, H., Shi, D., & Zhao, B. (2021). Does good luck make people overconfident? Evidence from a natural experiment in the stock market. Journal of corporate finance (Amsterdam, Netherlands), 68, 101933. doi: 10.1016/j.jcorpfin.2021.101933
2. Xiang, D., Zhang, Y., & Worthington, A. C. (2021). Determinants of the Use of Fintech Finance Among Chinese Small and Medium-Sized Enterprises. IEEE transactions on engineering management, 68(6), 1590-1604. doi: 10.1109/TEM.2020.2989136
3. Export Risk Prevention of Hunan Breeding Industry Based on Green Drive 10.2112/SI103-009.1
4. Quantitative Selection of Leading Industries of Green Economy in Coastal Cities Based on Industrial Relevance 2112/SI103-115.1
5. Ul Ain, Q., Rehman, G., & Zaheer, M. (2019). An analysis of water flow in subsurface environment by using a domian decomposition method. Water Conservation and Management, 3(1), 27-29. doi: 10.26480/wcm.01.2019.27.29
6. D Agata, C., Diolaiuti, G., Maragno, D., Smiraglia, C., & Pelfini, M. (2020). Climate change effects on landscape and environment in glacierized Alpine areas: retreating glaciers and enlarging forelands in the Bernina group (Italy) in the period 1954–2007. Geology, Ecology, and Landscapes, 4(1), 71-86. doi:10.1080/24749508.2019.1585658

• The authors require to give policy implications based on the findings.
• The Limitations and future research directions are missing.

Author Response

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Author Response File: Author Response.pdf

Reviewer 2 Report

The paper is concerning the sustainable finance in the building-real estate sector, focusing on green mortgages, and deepens how banking regulation can contribute to the green transition by applying prudential rules that combine the rigorous criteria required by the EU taxonomy with environmental risk assessment methods, based on the life cycle analysis approach (LCA).

The idea of presenting results of empirical research in the paper is very interesting and very clear. However, this version of the paper, requires improvement both in terms of the description of the research method as well as in terms of the obtained results e.g. it will be useful if  Authors carried calibration and robustness check of presenting model.

Finally, the paper should be re-written in most synthetic form. The paper has poor abstract which should be corrected is generally too long. In the introduction, there is not defined an explicit purpose of the study concerning data of Lombardy. The model should be better descript and explain in the context of present formulas. It seem that quantitative research is valuable but poorly described.

Remarks to empirical methodology

In this version of the paper research methods should be described better. The empirical method should be better described (the life cycle analysis approach (LCA). The data used for Lombardy can also be better described e.g. what the data is whether; these are annual data and what does that mean data from 2015-2020. It is not clear how many observations does the research sample have? Whether the data used for the estimation is in the form of a panel data? Do the authors analyse the time series data? the structure of the article needs to be improved. Usually do not submit to formulas in the literature review. There are no references to the literature on the subject concerning EU taxonomy e.g. Ehlers T., Diwen N. Gao and Frank Packer (2021), A taxonomy of sustainable finance taxonomies, BIS Papers No 118.

Detailed comments to the paper:

4. 4. variables concerning equation 1 should be written in italics;
5. 10 table 4 should be better described. In the third column “technical screening criteria” some applications are numbered, some not;
6. 14 Figure 3 “Method/procedure”. There are no data sources under the Figure 3. The authors should decide whether method or procedure;
7. 17 the equation (2) should be better described. The description should be more prominent in the chapter section;
8. 23 table 13; There are no data sources;
9. 24 table 14; There are no data sources.

Additional suggestion: The description of the model using with this study is requires some refinement. However, It seems that the paper may be interesting for readers who are interested in the green mortgages.

Author Response

We attached the answers

Author Response File: Author Response.pdf

Reviewer 3 Report

This article deals with sustainable finance in the real estate sector, focusing on how banking regulation can contribute to the green transition.

Overall, the article is well written. The aim of the research is indeed a practical one.

My comments are minor revisions:

-The article is quite long. If possible, I would suggest lightening the introduction.

-The abstract (from line 10 to 14) can be written better (more attractive).

 

Author Response

We attached the answers

Author Response File: Author Response.pdf

Round 2

Reviewer 1 Report

The contribution of the study is missing and the authors address all the comments. 

Author Response

please see the attached file

Author Response File: Author Response.pdf