Post by Duke University - The Fuqua School of Business

“Those who invest in cleaner technologies don’t do that because they care more. It’s because it is relatively cheaper for them to do so.” Research from Prof. Adriano Rampini and Duke's Andrea Lanteri shows how the biggest barrier to adopting cleaner technology is access to capital. Key insights: • Cleaner technologies often cost more upfront, even when they save money over time through lower energy and maintenance costs. • Financing constraints—including down payments and collateral requirements—can push firms and households toward older, more polluting technologies. • In shipping, larger and better-capitalized firms operate significantly cleaner fleets, while smaller operators tend to rely on older, less efficient vessels. • Some climate policies and green-lending programs may disproportionately benefit those who already have the resources to invest in expensive technologies. • Lower interest rates alone may not solve the problem if firms still cannot afford the upfront investment. • Stronger legal and financial systems that support collateral recovery and credit access could play an important role in accelerating clean-technology adoption. “The down payment is a barrier,” Rampini said. The research suggests that the transition to cleaner technology may depend as much on financial infrastructure as on engineering breakthroughs. #CleanTechnology #ClimateFinance #SustainableFinance #InfrastructureFinance #EnergyTransition #Shipping #CorporateFinance #ClimatePolicy #IMO