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Heterogeneity in preferences for renewable home heating systems among Irish households

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  • Meles, Tensay Hadush
  • Ryan, Lisa
  • Mukherjee, Sanghamitra C.

Abstract

This paper aims to understand heterogeneity in preferences for renewable home heating systems such as heat pump systems, using a combination of psychological construct statements and a discrete choice experiment. We employ a latent class analysis for a nationally representative sample of Irish households to identify and characterize distinct respondent classes based on their responses to statements on attitude, subjective norms, perceived behavioral control, and intention to install a heat pump that are constructed based on the theory of planned behavior. This allows us to identify four types of people with different viewpoints towards heat pumps. Furthermore, we conducted a discrete choice experiment with a subsample of randomly selected respondents to estimate preferences for different attributes of a new home heating system and the corresponding marginal willingness to pay. Our estimated results show that, in addition to upfront cost and bill savings, non-monetary attributes such as installation hassle, environmental sustainability, and an increase in home comfort of use are important determinants of the uptake of new home heating systems, including heat pumps. The findings of this study should provide useful information to policymakers and companies on end-user profiles, heterogeneity in preferences, and willingness to pay estimates for new home heating alternatives.

Suggested Citation

  • Meles, Tensay Hadush & Ryan, Lisa & Mukherjee, Sanghamitra C., 2022. "Heterogeneity in preferences for renewable home heating systems among Irish households," Applied Energy, Elsevier, vol. 307(C).
    • Handle: RePEc:eee:appene:v:307:y:2022:i:c:s0306261921014847
    DOI: 10.1016/j.apenergy.2021.118219
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    Cited by:

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    2. Brown, Marilyn A. & Kale, Snehal & Cha, Min-Kyeong & Chapman, Oliver, 2023. "Exploring the willingness of consumers to electrify their homes," Applied Energy, Elsevier, vol. 338(C).
    3. 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).

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    More about this item

    Keywords

    Home heating systems; Heat pump systems; Latent class analysis; Discrete choice experiment; Willingness to pay; Preference heterogeneity; Ireland;
    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
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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