Frank Hawkins Kenan Institute of Private Enterprise

UNC Kenan-Flagler Business School
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Kenan Institute to evaluate viability of green economy bond investments


Researchers at the Frank Hawkins Kenan Institute of Private Enterprise are evaluating the risk, feasibility and likely return of using a new type of financial investment, PACE bonds, to promote energy efficiency and green economy industry growth.

Property Assessed Clean Energy (PACE) bonds are financial instruments created by bundling loans made to owners of homes and businesses to finance renewable energy and energy efficiency improvements on their properties. They are gaining in popularity. Since 2008, 24 states and the District of Columbia have passed laws enabling local governments to establish districts that allow for PACE financing.

A research team led by Thomas Stith, program director for economic development, is assessing the risk associated with PACE bonds and the potential pricing and rating investors can expect. The institute’s work on this energy and environment project is made possible by the financial support of the Ygrene Energy Fund.

For more information on the PACE bond evaluation and the institute’s energy and environment work, contact Stith at (919) 962.8444 or