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Household preferences of hybrid home heating systems – A choice experiment application

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  • Ruokamo, Enni

Abstract

The residential heating sector presents considerable energy savings potential, as numerous heating solutions for reducing electricity consumption and utilizing renewable energy sources are available in the market. The aim of this paper is to examine determinants of household heating system choices and to use this information for policy planning purposes. This paper investigates residential homeowner attitudes regarding innovative hybrid home heating systems (HHHS) with choice experiment. Heating system scenarios are designed to represent the most relevant primary and supplementary heating alternatives currently available in Finland. The choice sets include six main heating alternatives (district heat, solid wood, wood pellet, electric storage heating, ground heat pump and exhaust air heat pump) that are described by five attributes (supplementary heating systems, investment costs, operating costs, comfort of use and environmental friendliness). The results imply that HHHSs generally appear to be accepted among households; however, several factors affect perceptions of these technologies. The results reveal differing household attitudes toward the main heating alternatives and show that such views are affected by socio-demographic characteristics (age, living environment, education, etc.). The results suggest that households view supplementary heating systems (especially solar-based) favorably. The other attributes studied also play a significant role in decision making.

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  • Ruokamo, Enni, 2016. "Household preferences of hybrid home heating systems – A choice experiment application," Energy Policy, Elsevier, vol. 95(C), pages 224-237.
    • Handle: RePEc:eee:enepol:v:95:y:2016:i:c:p:224-237
    DOI: 10.1016/j.enpol.2016.04.017
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    2. 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).
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    5. Ju-Hee Kim & Younggew Kim & Seung-Hoon Yoo, 2021. "Using a choice experiment to explore the public willingness to pay for the impacts of improving energy efficiency of an apartment," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(5), pages 1775-1793, October.
    6. Juan Carlos Martín & Concepción Román & Cira Mendoza, 2018. "Determinants for sun-and-beach self-catering accommodation selection," Tourism Economics, , vol. 24(3), pages 319-336, May.
    7. 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).
    8. Enni Ruokamo & Mikołaj Czajkowski & Nick Hanley & Artti Juutinen & Rauli Svento, 2016. "Linking perceived choice complexity with scale heterogeneity in discrete choice experiments: home heating in Finland," Working Papers 2016-30, Faculty of Economic Sciences, University of Warsaw.
    9. Sahari, Anna, 2019. "Electricity prices and consumers’ long-term technology choices: Evidence from heating investments," European Economic Review, Elsevier, vol. 114(C), pages 19-53.
    10. 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.
    11. Chen, Qiu, 2021. "District or distributed space heating in rural residential sector? Empirical evidence from a discrete choice experiment in South China," Energy Policy, Elsevier, vol. 148(PA).
    12. Selvakkumaran, Sujeetha & Ahlgren, Erik O., 2019. "Determining the factors of household energy transitions: A multi-domain study," Technology in Society, Elsevier, vol. 57(C), pages 54-75.
    13. Ruokamo, Enni & Kopsakangas-Savolainen, Maria & Meriläinen, Teemu & Svento, Rauli, 2019. "Towards flexible energy demand – Preferences for dynamic contracts, services and emissions reductions," Energy Economics, Elsevier, vol. 84(C).
    14. Jingchao, Zhang & Kotani, Koji & Saijo, Tatsuyoshi, 2018. "Public acceptance of environmentally friendly heating in Beijing: A case of a low temperature air source heat pump," Energy Policy, Elsevier, vol. 117(C), pages 75-85.
    15. 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.
    16. Karytsas, Spyridon & Polyzou, Olympia & Karytsas, Constantine, 2019. "Factors affecting willingness to adopt and willingness to pay for a residential hybrid system that provides heating/cooling and domestic hot water," Renewable Energy, Elsevier, vol. 142(C), pages 591-603.
    17. 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).
    18. Rommel, Kai & Sagebiel, Julian, 2017. "Preferences for micro-cogeneration in Germany: Policy implications for grid expansion from a discrete choice experiment," Applied Energy, Elsevier, vol. 206(C), pages 612-622.
    19. 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).
    20. Stefania Troiano & Veronica Novelli & Paola Geatti & Matteo Carzedda & Francesco Marangon & Luciano Ceccon, 2021. "Households? preferences for wood in home heating systems: Does sustainability matter?," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2021(2), pages 101-120.
    21. Ortega-Izquierdo, Margarita & Paredes-Salvador, Andrés & Montoya-Rasero, Carlos, 2019. "Analysis of the decision making factors for heating and cooling systems in Spanish households," Renewable and Sustainable Energy Reviews, Elsevier, vol. 100(C), pages 175-185.
    22. Stefania Troiano & Daniel Vecchiato & Francesco Marangon & Tiziano Tempesta & Federico Nassivera, 2019. "Households’ Preferences for a New ‘Climate-Friendly’ Heating System: Does Contribution to Reducing Greenhouse Gases Matter?," Energies, MDPI, vol. 12(13), pages 1-19, July.
    23. Li, Pei-Hao & Keppo, Ilkka & Strachan, Neil, 2018. "Incorporating homeowners' preferences of heating technologies in the UK TIMES model," Energy, Elsevier, vol. 148(C), pages 716-727.
    24. Ma, Ben & Yu, Yihua & Urban, Frauke, 2018. "Green transition of energy systems in rural China: National survey evidence of households’ discrete choices on water heaters," Energy Policy, Elsevier, vol. 113(C), pages 559-570.

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    More about this item

    Keywords

    Hybrid home heating system; Heating; Choice experiment; Discrete choice;
    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
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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