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

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

No S05/2020, Working Papers "Sustainability and Innovation" from Fraunhofer Institute for Systems and Innovation Research (ISI)

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.

Keywords: energy efficiency; energy efficiency obligations; heating systems; hassle costs; energy efficiency paradox; choice experiment (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-dcm, nep-ene and nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:fisisi:s052020

DOI: 10.24406/publica-fhg-300157

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