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Heterogeneity in household preferences for energy-efficient heating systems

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  • Paul Thorsnes

    (Department of Economics, University of Otago, New Zealand)

Abstract

This paper reports analysis of the results of two stated-choice surveys to elicit the preferences of New Zealand homeowners for attributes of improvements in space and water heating systems. We implement the survey using web-based software especially well-suited to exploration of heterogeneity in preferences across participants; independently for each participant it provides estimates of the relative strength of preference for each attribute. Cluster analysis reveals five groups of participants with similar patterns of preferences. Interestingly, the cluster comprising people who prefer to avoid a large upfront expenditure – those targeted by current subsidy policy – is the smallest of the five clusters. The attributes of most concern to each of the other four groups suggest alternative policy interventions.

Suggested Citation

  • Paul Thorsnes, 2017. "Heterogeneity in household preferences for energy-efficient heating systems," Working Papers 1713, University of Otago, Department of Economics, revised Dec 2017.
    • Handle: RePEc:otg:wpaper:1713
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    File URL: http://www.otago.ac.nz/economics/research/otago671642.pdf
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    References listed on IDEAS

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