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Investigating determinants of choice and predicting market shares of renewable-based heating systems under alternative policy scenarios

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  • Franceschinis, Cristiano
  • Thiene, Mara

Abstract

Fostering the uptake of heating technologies based on renewable resources is an important part of the EU energy policy. Yet, despite e!orts to promote their dif-fusion, heating systems based on fossil fuels are still predominant. In order to better tailor energy policies to citizens preferences, it is crucial to collect accurate informa-tion on their determinants of heating choices. At this purpose, we adopted a choice experiment and a latent class model to analyze preferences of householders in the Veneto region (North-East Italy) for di!erent heating systems and their key features. We focused on three devices based on biomass and three on fossil fuels, and account-ed for technical, economic and environmental characteristics of such systems. Model estimates highlight the presence of substantial preference heterogeneity among the population, which can be partially explained by citizens socio-demographics. We also use model outputs to simulate market shares for heating systems under alternative policy scenarios. Results provide interesting suggestions to inform the design of poli-cies aimed at fostering the adoption of biomass-based heating systems.

Suggested Citation

  • Franceschinis, Cristiano & Thiene, Mara, 2020. "Investigating determinants of choice and predicting market shares of renewable-based heating systems under alternative policy scenarios," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 9(3), December.
    • Handle: RePEc:ags:aieabj:309252
    DOI: 10.22004/ag.econ.309252
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    References listed on IDEAS

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