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Household preferences of hybrid home heating systems – A choice experiment application

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  • Ruokamo, Enni

Abstract

The residential heating sector presents considerable energy savings potential, as numerous heating solutions for reducing electricity consumption and utilizing renewable energy sources are available in the market. The aim of this paper is to examine determinants of household heating system choices and to use this information for policy planning purposes. This paper investigates residential homeowner attitudes regarding innovative hybrid home heating systems (HHHS) with choice experiment. Heating system scenarios are designed to represent the most relevant primary and supplementary heating alternatives currently available in Finland. The choice sets include six main heating alternatives (district heat, solid wood, wood pellet, electric storage heating, ground heat pump and exhaust air heat pump) that are described by five attributes (supplementary heating systems, investment costs, operating costs, comfort of use and environmental friendliness). The results imply that HHHSs generally appear to be accepted among households; however, several factors affect perceptions of these technologies. The results reveal differing household attitudes toward the main heating alternatives and show that such views are affected by socio-demographic characteristics (age, living environment, education, etc.). The results suggest that households view supplementary heating systems (especially solar-based) favorably. The other attributes studied also play a significant role in decision making.

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  • Ruokamo, Enni, 2016. "Household preferences of hybrid home heating systems – A choice experiment application," Energy Policy, Elsevier, vol. 95(C), pages 224-237.
    • Handle: RePEc:eee:enepol:v:95:y:2016:i:c:p:224-237
    DOI: 10.1016/j.enpol.2016.04.017
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    More about this item

    Keywords

    Hybrid home heating system; Heating; Choice experiment; Discrete choice;
    All these keywords.

    JEL classification:

    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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