@article{f68fd9aa433b484caef1e775bd022427,
title = "Environmental Hazards and Mortgage Credit Risk: Evidence from Texas Pipeline Incidents",
abstract = "This study examines the effects of pipeline hazards on credit risk using evidence from the 2005–2011 home mortgage loans in Texas. Difference-in-difference analyses show a permanently lower origination rate by 1.9% in the pipeline-present areas compared to the pipeline-free areas, which was further enlarged by 1.8% whenever pipeline incidents happened. Evidence suggests that the permanent difference in credit access reflects lenders{\textquoteright} concerns about collateral value and borrowers{\textquoteright} repayment ability. The elevated post-incident risk perceptions indicate lenders{\textquoteright} aversion to environmental liabilities. Lenders{\textquoteright} risk management strategies differed by borrowers{\textquoteright} income and evolved with the tightening of the securitization market.",
author = "Minhong Xu and Yilan Xu",
note = ", . The authors thank Katherine Baylis, Mark Borgschulte, Peter Christensen, Sandy Dall'Erba, Madhu Khanna Daniel McMillen and Erica Myers for helpful comments. The authors benefit from discussions with participants in the 2017 American Council on Consumer Interests Annual Conference, the 63 rd Annual North American Meetings of the Regional Science Association International and the pERE Seminar of Department of Agricultural and Consumer Economics in the University of Illinois at Urbana‐Champaign. The research project was funded by the National Institute of Food and Agriculture (NIFA) at the United States Department of Agriculture (#ILLU‐470‐367) The authors thank Katherine Baylis, Mark Borgschulte, Peter Christensen, Sandy Dall'Erba, Madhu Khanna, Daniel McMillen and Erica Myers for helpful comments. The authors benefit from discussions with participants in the 2017 American Council on Consumer Interests Annual Conference, the 63rd Annual North American Meetings of the Regional Science Association International and the pERE Seminar of Department of Agricultural and Consumer Economics in the University of Illinois at Urbana-Champaign. The research project was funded by the National Institute of Food and Agriculture (NIFA) at the United States Department of Agriculture (#ILLU-470-367).",
year = "2020",
month = dec,
day = "1",
doi = "10.1111/1540-6229.12213",
language = "English (US)",
volume = "48",
pages = "1096--1135",
journal = "Real Estate Economics",
issn = "1080-8620",
publisher = "Wiley-Blackwell",
number = "4",
}