Exploring the Spatial Heterogeneity of Individual Preferences for Ambient Heating Systems

Franceschinis, Cristiano; Scarpa, Raffaele; Thiene, Mara; Rose, John M.; Moretto, Michele; Cavalli, Raffaele

doi:10.3390/en9060407

Cited by 11 publications

(6 citation statements)

References 57 publications

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“…Consumers might, for example, be more willing to accept a control of their washing machine than of their freezer. Third, we analyze if consumers show dominant decision-making behavior, i.e., decision strategies, by analyzing individual WTA values using individual-level parameter estimates as for example performed by Greene et al [20] or Franceschinis et al [21]. We expect, for example, to identify respondents who will never choose a TOU tariff, regardless of a discount, because of their perceived discomfort.…”

Section: Literature Reviewmentioning

confidence: 99%

Consumers’ Willingness to Accept Time-of-Use Tariffs for Shifting Electricity Demand

2020

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Time-of-use (TOU) electricity tariffs represent an instrument for demand side management. By reducing energy demand during peak times, less investments in otherwise necessary, costly, and CO2 intensive redispatch would be required. We use a choice experiment (CE) to analyze private consumers’ acceptance of TOU tariffs in Germany. In our CE, respondents choose between a fixed rate tariff and two TOU tariffs that differ by peak time scheme and by a control of appliances’ electricity consumption during that time. We use a mixed logit model to account for taste heterogeneity. Moreover, investigating decision strategies, we identify three different strategies that shed light on drivers of unobserved taste heterogeneity: (1) Always choosing the status quo, (2) always choosing the maximum discount, and (3) choosing a TOU tariff but not always going for the maximum discount. Overall, about 70% of our 1398 respondents would choose a TOU tariff and shift their electricity demand, leading to a decline in energy demand during peak times. Rough estimates indicate that this would lead to significant savings in electricity generation, avoiding up to a mid to large-sized fossil-fuel power plant.

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Section: Literature Reviewmentioning

confidence: 99%

Consumers’ Willingness to Accept Time-of-Use Tariffs for Shifting Electricity Demand

2020

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“…Several studies analyse awareness [12,13] and estimate citizens' willingness to pay (WTP) for the use of renewable energy sources (e.g., [14][15][16][17][18][19][20]). A number of studies also investigate homeowners' preferences for renewable domestic heating systems using the discrete choice experiment (DCE) approach [21][22][23][24][25][26][27][28][29][30][31][32][33][34][35] or conjoint and variance analysis [36], and most of them suggest that whilst renewable energy adoption is notably valued by households, this value is not enough to counterbalance the importance of the economic factors while purchasing a new heating [24,25,27,29].…”

Section: Introductionmentioning

confidence: 99%

Households’ Preferences for a New ‘Climate-Friendly’ Heating System: Does Contribution to Reducing Greenhouse Gases Matter?

et al. 2019

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This study investigates the preferences of Italian home-owners when choosing a new domestic heating system. The focus is on understanding the influence on consumer choice of a potential label certifying the effect of the heating system on the greenhouse effect. To this end, we designed a survey including a discrete choice experiment and administered it to residents in north-eastern Italy. Our findings reveal that, on average, respondents pay particular attention to the green effect of their purchase. The carbon dioxide reduction label was considered second in terms of importance after cost. Further analysis found that our sample presents three clusters of customers, with intra-cluster homogeneous preferences. The cluster analysis showed that while the initial system costs are considered to varying degrees by the whole sample, the carbon dioxide reduction label was considered important by 79% of respondents (members of clusters 1 and 2). To achieve greater results in reducing the greenhouse effect of the domestic heating sector, a combination of policies should be used simultaneously to achieve greater effectiveness. Our simulations support the hypothesis that policymakers should achieve greater results in terms of reducing the domestic greenhouse gas emissions by applying a combined policy that leverages the importance citizens accord to the different characteristics of a heating system. From our results, the application of a ‘low carbon dioxide ( C O 2 ) emissions’ label will amplify the effect of a subsidy that reduces the initial system costs.

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“…Existing research has identified a variety of factors fostering and/or hindering the adoption process and identified variables influencing environmentally significant decision-making [29]. Diffusion of innovation and technology acceptance [6][7][8][9]12,14,[30][31][32], willingness to pay, spending motivation, and new business models, such as contracting and leasing [11,[15][16][17][33][34][35][36][37][38][39], diverse household preferences on renovation [33,40], sociodemographic factors [29,35,40], barriers of adoption [12,35,41], etc., are only some examples of the existing approaches. Furthermore, there are several theories or models relating to decision-making and energy use in dwellings.…”

Section: Literature Overviewmentioning

confidence: 99%

Communication and Household Adoption of Heating Products in Hungary

Munkácsi

Mahapatra

2019

Energies

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Existing studies of heating products have analyzed the adoption of energy-efficient heating technologies from diverse micro and macroeconomic aspects, such as diffusion of innovation, willingness to pay, business models, energy pricing, etc., but the analysis from a marketing management approach based on end customer insight is still lacking. Understanding the decision-making process of end customers, and the influence of social environment at the diverse stages of the purchase process leads to a focused market strategy, thereby contributes toward overcoming the multi-level segmentation challenge faced by the manufacturers of heating products. In this context, a two-step exploratory research was conducted in December 2013 with end customers of the residential heat market in Hungary. The end customers were found to be active decision-makers engaged in deliberate planning in the purchase of heating products. They start searching for information by turning mainly to online information sources and they actively integrate their social network in all stages of the decision-making process, which means that the role of the installer is relatively less influential along the whole purchasing process. Identified influencing communication channels at the diverse stages of the purchase process may support manufacturers to develop a user-centric marketing strategy by optimizing the communication instruments in their marketing mix by, for instance, including direct end customer communication via online channels and by de-emphasizing offline communication channels.

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Exploring the Spatial Heterogeneity of Individual Preferences for Ambient Heating Systems

Cited by 11 publications

References 57 publications

Consumers’ Willingness to Accept Time-of-Use Tariffs for Shifting Electricity Demand

Consumers’ Willingness to Accept Time-of-Use Tariffs for Shifting Electricity Demand

Households’ Preferences for a New ‘Climate-Friendly’ Heating System: Does Contribution to Reducing Greenhouse Gases Matter?

Communication and Household Adoption of Heating Products in Hungary

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