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Individual Heating systems vs. District Heating systems: What will consumers pay for convenience?

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  • Yoon, Taeyeon
  • Ma, Yongsun
  • Rhodes, Charles

Abstract

For Korea's two most popular apartment heating systems – Individual Heating (IH) and District Heating (DH), – user convenience rests heavily on location of the boiler, availability of hot water, administration of the system, and user control of indoor temperature. A double-bounded dichotomous choice method estimates consumer value for convenience, in a hypothetical market. Higher-income more-educated consumers in more expensive apartments prefer DH. Cost-conscious consumers, who use more electrical heating appliances and more actively adjust separate room temperatures, prefer IH.

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  • Yoon, Taeyeon & Ma, Yongsun & Rhodes, Charles, 2015. "Individual Heating systems vs. District Heating systems: What will consumers pay for convenience?," Energy Policy, Elsevier, vol. 86(C), pages 73-81.
    • Handle: RePEc:eee:enepol:v:86:y:2015:i:c:p:73-81
    DOI: 10.1016/j.enpol.2015.06.024
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    2. Franceschinis, Cristiano & Thiene, Mara, 2020. "Investigating determinants of choice and predicting market shares of renewable-based heating systems under alternative policy scenarios," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 9(3), December.
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    4. Lim, Seul-Ye & Kim, Hyo-Jin & Yoo, Seung-Hoon, 2016. "The demand function for residential heat through district heating system and its consumption benefits in Korea," Energy Policy, Elsevier, vol. 97(C), pages 155-160.
    5. 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).
    6. Ju-Hee Kim & Seul-Ye Lim & Seung-Hoon Yoo, 2022. "A Price Premium for the District Heating System: An Empirical Investigation on South Korean Residents," Sustainability, MDPI, vol. 14(12), pages 1-10, June.
    7. Jordi García-Céspedes & Ignasi Herms & Georgina Arnó & José Juan de Felipe, 2022. "Fifth-Generation District Heating and Cooling Networks Based on Shallow Geothermal Energy: A review and Possible Solutions for Mediterranean Europe," Energies, MDPI, vol. 16(1), pages 1-31, December.
    8. Meles, Tensay Hadush & Ryan, Lisa, 2022. "Adoption of renewable home heating systems: An agent-based model of heat pumps in Ireland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 169(C).
    9. Tensay Meles & L. (Lisa B.) Ryan & Sanghamitra Mukherjee, 2019. "Preferences for Renewable Home Heating: A Choice Experiment Study of Heat Pump System in Ireland," Open Access publications 10197/11467, School of Economics, University College Dublin.
    10. Lauma Balode & Beate Zlaugotne & Armands Gravelsins & Oskars Svedovs & Ieva Pakere & Vladimirs Kirsanovs & Dagnija Blumberga, 2023. "Carbon Neutrality in Municipalities: Balancing Individual and District Heating Renewable Energy Solutions," Sustainability, MDPI, vol. 15(10), pages 1-19, May.
    11. Qiang Wang & Thomas Dogot & Guosheng Wu & Xianlei Huang & Changbin Yin, 2019. "Residents’ Willingness for Centralized Biogas Production in Hebei and Shandong Provinces," Sustainability, MDPI, vol. 11(24), pages 1-16, December.
    12. Erica Corradi & Mosè Rossi & Alice Mugnini & Anam Nadeem & Gabriele Comodi & Alessia Arteconi & Danilo Salvi, 2021. "Energy, Environmental, and Economic Analyses of a District Heating (DH) Network from Both Thermal Plant and End-Users’ Prospective: An Italian Case Study," Energies, MDPI, vol. 14(22), pages 1-25, November.
    13. 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.
    14. Chulseung Lee & Jaechan Park & Kangmun Lee & Ji Yeon Yang & Taewoo Roh, 2019. "Energy Efficiency for Supplier and Sustainability for Demand: A Case of Heating Systems in South Korea," Sustainability, MDPI, vol. 11(15), pages 1-21, August.
    15. Lake, Andrew & Rezaie, Behanz & Beyerlein, Steven, 2017. "Review of district heating and cooling systems for a sustainable future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 417-425.
    16. Muhammad Faizan Tahir & Haoyong Chen & Muhammad Sufyan Javed & Irfan Jameel & Asad Khan & Saifullah Adnan, 2019. "Integration of Different Individual Heating Scenarios and Energy Storages into Hybrid Energy System Model of China for 2030," Energies, MDPI, vol. 12(11), pages 1-20, May.
    17. Hyo-Jin Kim & Seul-Ye Lim & Seung-Hoon Yoo, 2017. "The Convenience Benefits of the District Heating System over Individual Heating Systems in Korean Households," Sustainability, MDPI, vol. 9(8), pages 1-12, August.

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