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Household preferences for new heating systems: Insights from a multi-country discrete choice experiment

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  • Schleich, Joachim
  • Faure, Corinne
  • Guetlein, Marie-Charlotte
  • Tu, Gengyang

Abstract

This paper employs identical demographically representative discrete choice experiments (DCEs) on new heating systems with owner-occupier households in Poland, Sweden, and the United Kingdom (UK) to estimate respondent will-ingness-to-pay (WTP) for rebates, heating cost savings, installation time (re-flecting "hassle costs") and warranty length. The results from estimating coun-try-specific mixed logit models suggest that participants generally value rebates for new heating systems, but valuation differs substantially across countries and was found to be highest for Poland. For Sweden (but not for Poland or the UK), rebates appeared more effective if offered by a public rather than a private fund-ing source. Because higher income households in the UK value rebates more than lower income households, rebates may be regressive. The results for heat-ing cost savings in the three countries imply static payback times of ten to fif-teen years for more energy-efficient heating systems. We further find that re-spondents have a strong dislike for longer installation time and a high WTP for longer warranty times.

Suggested Citation

  • Schleich, Joachim & Faure, Corinne & Guetlein, Marie-Charlotte & Tu, Gengyang, 2020. "Household preferences for new heating systems: Insights from a multi-country discrete choice experiment," Working Papers "Sustainability and Innovation" S05/2020, Fraunhofer Institute for Systems and Innovation Research (ISI).
    • Handle: RePEc:zbw:fisisi:s052020
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    References listed on IDEAS

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    Cited by:

    1. Lang, Ghislaine & Farsi, Mehdi & Lanz, Bruno & Weber, Sylvain, 2021. "Energy efficiency and heating technology investments: Manipulating financial information in a discrete choice experiment," Resource and Energy Economics, Elsevier, vol. 64(C).
    2. Côté, Elizabeth & Pons-Seres de Brauwer, Cristian, 2023. "Preferences of homeowners for heat-pump leasing: Evidence from a choice experiment in France, Germany, and Switzerland," Energy Policy, Elsevier, vol. 183(C).
    3. Schleich, Joachim & Tu, Gengyang & Faure, Corinne & Guetlein, Marie-Charlotte, 2021. "Would you prefer to rent rather than own your new heating system? Insights from a discrete choice experiment among owner-occupiers in the UK," Energy Policy, Elsevier, vol. 158(C).

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    Keywords

    energy efficiency; energy efficiency obligations; heating systems; hassle costs; energy efficiency paradox; choice experiment;
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