Publications

Description

Authors: Tensay Hadush Meles, Lisa Ryan, Sanghamitra C. Mukherjee

Abstract: This paper aims to understand heterogeneity in preferences for renewable home heating systems such as heat pump systems, using a combination of psychological construct statements and a discrete choice experiment. We employ a latent class analysis for a nationally representative sample of Irish households to identify and characterize distinct respondent classes based on their responses to statements on attitude, subjective norms, perceived behavioral control, and intention to install a heat pump that are constructed based on the theory of planned behavior. This allows us to identify four types of people with different viewpoints towards heat pumps. Furthermore, we conducted a discrete choice experiment with a subsample of randomly selected respondents to estimate preferences for different attributes of a new home heating system and the corresponding marginal willingness to pay. Our estimated results show that, in addition to upfront cost and bill savings, non-monetary attributes such as installation hassle, environmental sustainability, and an increase in home comfort of use are important determinants of the uptake of new home heating systems, including heat pumps. The findings of this study should provide useful information to policymakers and companies on end-user profiles, heterogeneity in preferences, and willingness to pay estimates for new home heating alternatives.