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An Economic Analysis of Policies for Promoting Economically Efficient Water Heater Systems Operating Under Seasonal Climatic Conditions


  • Arif Yurtsev

    () (Eastern Mediterranean University, North Cyprus)

  • Glenn P. Jenkins

    () (Queen’s University, Canada and Eastern Mediterranean University, North Cyprus)


This paper reports on an economic cost-effective analysis of water heating systems including solar water heating systems (SWHSs). This study finds that in situations where there is a winter, or a rainy season, the choice of the source of energy for the SWHS’s back-up during this period is critical for its overall cost-effectiveness. It is found that in the conditions of North Cyprus, an SWHS with electricity back-up is far superior to using electricity alone, however, it is inferior to heating water with either a liquefied petroleum gas (LPG) water heater alone or an SWHS with an LPG back-up. Policies to promote water heating systems that reduce the use of electricity should not encourage the installation of SWHSs with electricity back-up. An LPG water heater or an SWHS with an LPG back-up are economically more cost-effective, with or without the inclusion of the social cost of carbon estimates.

Suggested Citation

  • Arif Yurtsev & Glenn P. Jenkins, 2015. "An Economic Analysis of Policies for Promoting Economically Efficient Water Heater Systems Operating Under Seasonal Climatic Conditions," Development Discussion Papers 2015-07, JDI Executive Programs.
  • Handle: RePEc:qed:dpaper:279

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    References listed on IDEAS

    1. Kalogirou, Soteris, 1997. "Solar water heating in Cyprus: current status of technology and problems," Renewable Energy, Elsevier, vol. 10(1), pages 107-112.
    2. Tsilingiridis, G. & Martinopoulos, G., 2010. "Thirty years of domestic solar hot water systems use in Greece – energy and environmental benefits – future perspectives," Renewable Energy, Elsevier, vol. 35(2), pages 490-497.
    3. Allen, S.R. & Hammond, G.P. & Harajli, H.A. & McManus, M.C. & Winnett, A.B., 2010. "Integrated appraisal of a Solar Hot Water system," Energy, Elsevier, vol. 35(3), pages 1351-1362.
    4. Roulleau, T. & Lloyd, C.R., 2008. "International policy issues regarding solar water heating, with a focus on New Zealand," Energy Policy, Elsevier, vol. 36(6), pages 1843-1857, June.
    5. Tsilingiridis, G. & Martinopoulos, G. & Kyriakis, N., 2004. "Life cycle environmental impact of a thermosyphonic domestic solar hot water system in comparison with electrical and gas water heating," Renewable Energy, Elsevier, vol. 29(8), pages 1277-1288.
    6. Gillingham, Kenneth, 2009. "Economic efficiency of solar hot water policy in New Zealand," Energy Policy, Elsevier, vol. 37(9), pages 3336-3347, September.
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    More about this item


    Cost-effectiveness analysis; water heater systems; North Cyprus.;

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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