Consumer choice and willingness-to-pay for heating system attributes

Mona Chitnis and Mohammad Hossain

University of Surrey, UK

Overview

Residential heating systems in the UK, which account for 60% of the nation’s heat use, should be replaced with low-emission alternatives as part of the decarbonisation agenda. A heating system includes several features, including capital, installation and operating costs, energy efficiency, and supplier switching flexibility. The choice of a heating system depends on the attributes that homeowners prioritise when selecting a heating system for their homes. Therefore, it is crucial to investigate household preferences and willingness to pay (WTP) for heating system features (Scarpa & Willis, 2010).

In this work, we employ a discrete choice experiment to investigate households’ WTP for a set of heating system characteristics for three different heating systems in Surrey County Council, UK. Our findings allow us to examine how people feel about heat pumps and heat networks, considered more cutting-edge, technologically based renewable technologies, vs traditional gas central heating.

Full abstract