TY - JOUR
T1 - Household preferences for private versus public subsidies for new heating systems
T2 - insights from a multi-country discrete choice experiment
AU - Schleich, Joachim
AU - Guetlein, Marie Charlotte
AU - Tu, Gengyang
AU - Faure, Corinne
N1 - Funding Information:
This research received funding by the European Union’s Horizon 2020 Framework Programme under the project CHEETAH - CHanging Energy Efficient Technology Adoption in Households (Grant agreement ID: 723716)]. We are grateful to three anonymous reviewers for their insightful comments and suggestions. We are also thankful for the technical advice and feedback received by Wolfgang Eichhammer and Barbara Schlomann (Fraunhofer Institute for Systems and Innovation Research, Karlsruhe, Germany), Eftim Popovski and Jan Steinbach (Institute of Resources Efficiency and Energy Strategies, Karlsruhe, Germany) and Andreas Müller (Energy Economics Group, TU Vienna, Austria).
Publisher Copyright:
© 2022 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2022/3/6
Y1 - 2022/3/6
N2 - This paper employs demographically representative discrete choice experiments (DCEs) with owner occupiers in Poland, Sweden, and the United Kingdom (UK) to estimate the effects of subsidies, heating cost savings, installation time (reflecting ‘hassle costs’) and warranty length on owner occupiersʻ propensity to invest in a new heating system. In particular, the paper explores whether owner occupiers value subsidies received from public funding sources differently than subsidies received from private funding sources. The results from estimating mixed logit models suggest that respondents not only value subsidies for new heating systems because they decrease the net price, but they also value receiving a subsidy per se. For participants from Sweden (but not from Poland and the UK), this non-monetary value was found to be higher for subsidies offered by a public than by a private funding source. The results for heating cost savings in the three countries imply implicit discount rates between about 11 and 13%. We further find that respondents in Poland dislike longer installation times, and that respondents in all three countries value longer warranty times.
AB - This paper employs demographically representative discrete choice experiments (DCEs) with owner occupiers in Poland, Sweden, and the United Kingdom (UK) to estimate the effects of subsidies, heating cost savings, installation time (reflecting ‘hassle costs’) and warranty length on owner occupiersʻ propensity to invest in a new heating system. In particular, the paper explores whether owner occupiers value subsidies received from public funding sources differently than subsidies received from private funding sources. The results from estimating mixed logit models suggest that respondents not only value subsidies for new heating systems because they decrease the net price, but they also value receiving a subsidy per se. For participants from Sweden (but not from Poland and the UK), this non-monetary value was found to be higher for subsidies offered by a public than by a private funding source. The results for heating cost savings in the three countries imply implicit discount rates between about 11 and 13%. We further find that respondents in Poland dislike longer installation times, and that respondents in all three countries value longer warranty times.
KW - Energy efficiency
KW - choice experiment
KW - heating systems
KW - subsidies
UR - http://www.scopus.com/inward/record.url?scp=85126232204&partnerID=8YFLogxK
U2 - 10.1080/00036846.2022.2030043
DO - 10.1080/00036846.2022.2030043
M3 - Article
AN - SCOPUS:85126232204
SN - 0003-6846
VL - 54
SP - 4292
EP - 4309
JO - Applied Economics
JF - Applied Economics
IS - 37
ER -