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

: Schleich, Joachim; Faure, Corinne; Guetlein, Marie-Charlotte; Tu, Gengyang

Fulltext urn:nbn:de:0011-n-5821898 (387 KByte PDF)
MD5 Fingerprint: f9cb0873a88f59ca20d0192e2c4f7c7a
Created on: 20.3.2020

Karlsruhe: Fraunhofer ISI, 2020, 22 pp.
Working Paper Sustainability and Innovation, S 05/2020
European Commission EC
H2020; 723716; CHEETAH
Changing Energy Efficiency Technology Adoption in Households
Report, Electronic Publication
Fraunhofer ISI ()
energy efficiency; energy efficiency obligations; heating systems; Hassle costs; Energy efficiency paradox; choice experiment

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 willingness-to-pay (WTP) for rebates, heating cost savings, installation time (reflecting "hassle costs") and warranty length. The results from estimating country-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 funding source. Because higher income households in the UK value rebates more than lower income households, rebates may be regressive. The results for heating cost savings in the three countries imply static payback times of ten to fifteen years for more energy-efficient heating systems. We further find that respondents have a strong dislike for longer installation time and a high WTP for longer warranty times.