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Willingness-to-Pay for District Heating from Renewables of Private Households in Germany

Author

Listed:
  • Thomas Krikser

    (Department of Management in the International Food Industry, University of Kassel, 34125 Kassel, Germany)

  • Adriano Profeta

    (DIL—Deutsches Institut für Lebensmitteltechnik e.V., 49610 Quakenbrück, Germany)

  • Sebastian Grimm

    (AGFW | DerEnergieeffizienzverband für Wärme, Kälte und KWK e.V., 60596 Frankfurt am Main, Germany)

  • Heiko Huther

    (AGFW | DerEnergieeffizienzverband für Wärme, Kälte und KWK e.V., 60596 Frankfurt am Main, Germany)

Abstract

Recent discussion about future energy production promotes the recovery of industrial heat as a potential solution to reduce carbon emissions. Experts call for an expansion of central heating by renewable energy systems to ensure a decarbonization of energy systems. In this context, district heating could play a significant role in city and district planning. Nonetheless, for private households, environmental aspects are only one factor amongst others as, e.g., capital costs, comfort and security. In this study, we focus on private household preferences and willingness-to-pay for district heating and district heating from renewables compared to gas condensing boilers and heat pumps. For the study, we decided to apply a discrete-choice experiment and collected data on attitudes towards sustainability, economic aspects and demands for providers of heat supply as dimensions for a factor and cluster analysis in order to apply a market segmentation. The results show that district heating by renewables is the most preferred heating option for households followed by district heating from fossil fuels, heat pumps and gas boilers. Furthermore, the study offers more profound insight into the willingness-to-pay for each heating option and reports interaction effects for the different market segments that could be identified in the analysis.

Suggested Citation

  • Thomas Krikser & Adriano Profeta & Sebastian Grimm & Heiko Huther, 2020. "Willingness-to-Pay for District Heating from Renewables of Private Households in Germany," Sustainability, MDPI, vol. 12(10), pages 1-14, May.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:10:p:4129-:d:359710
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    References listed on IDEAS

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    2. Oleg O. Smirnov, 2023. "Assessment of the Impact of Transparency and Affordability of Technological Connection on the Developer's Decision on New Construction in Russian Cities," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 22(2), pages 355-380.
    3. Gareth Hugh Thomas & Jack Flower & Rob Gross & Karen Henwood & Fiona Shirani & Jamie Speirs & Nick Pidgeon, 2024. "A relational approach to characterizing householder perceptions of disruption in heat transitions," Nature Energy, Nature, vol. 9(5), pages 570-579, May.
    4. Batara Surya & Andi Muhibuddin & Seri Suriani & Emil Salim Rasyidi & Baharuddin Baharuddin & Andi Tenri Fitriyah & Herminawaty Abubakar, 2021. "Economic Evaluation, Use of Renewable Energy, and Sustainable Urban Development Mamminasata Metropolitan, Indonesia," Sustainability, MDPI, vol. 13(3), pages 1-45, January.
    5. Wendel, Frank & Blesl, Markus & Brodecki, Lukasz & Hufendiek, Kai, 2022. "Expansion or decommission? – Transformation of existing district heating networks by reducing temperature levels in a cost-optimum network design," Applied Energy, Elsevier, vol. 310(C).
    6. Anna Grzegórska & Piotr Rybarczyk & Valdas Lukoševičius & Joanna Sobczak & Andrzej Rogala, 2021. "Smart Asset Management for District Heating Systems in the Baltic Sea Region," Energies, MDPI, vol. 14(2), pages 1-25, January.
    7. Georgia K. Roberts & Dominique J. Pride & Joseph M. Little & Julie M. Mueller, 2023. "Willingness to Pay for Renewably-Sourced Home Heating in the Fairbanks North Star Borough," Energies, MDPI, vol. 16(8), pages 1-14, April.
    8. Billerbeck, Anna & Breitschopf, Barbara & Preuß, Sabine & Winkler, Jenny & Ragwitz, Mario & Keles, Dogan, 2024. "Perception of district heating in Europe: A deep dive into influencing factors and the role of regulation," Energy Policy, Elsevier, vol. 184(C).
    9. Dalia Štreimikienė & Vidas Lekavičius & Gintare Stankūnienė & Aušra Pažėraitė, 2022. "Renewable Energy Acceptance by Households: Evidence from Lithuania," Sustainability, MDPI, vol. 14(14), pages 1-17, July.
    10. Lauma Balode & Kristiāna Dolge & Dagnija Blumberga, 2021. "The Contradictions between District and Individual Heating towards Green Deal Targets," Sustainability, MDPI, vol. 13(6), pages 1-26, March.
    11. Burghard, Uta & Breitschopf, Barbara & Wohlfarth, Katharina & Müller, Fabian & Keil, Julia, 2021. "Perception of monetary and non-monetary effects on the energy transition: Results of a mixed method approach," Working Papers "Sustainability and Innovation" S04/2021, Fraunhofer Institute for Systems and Innovation Research (ISI).

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