University of Oulu

Heating system decision : a study based on newly built detached houses in Finland

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Author: Räihä, Jouni1
Organizations: 1University of Oulu, Oulu Business School, Department of Economics, Economics
Format: ebook
Version: published version
Access: open
Online Access: PDF Full Text (PDF, 1.3 MB)
Pages: 77
Persistent link:
Language: English
Published: Oulu : J. Räihä, 2019
Publish Date: 2019-06-10
Thesis type: Master's thesis
Tutor: Kopsakangas-Savolainen, Maria
Ruokamo, Enni
Reviewer: Kopsakangas-Savolainen, Maria
Ruokamo, Enni


This study examines new detached house owners’ residential heating system choice determinants in Finland. The randomly drawn survey-based research includes three separate interrelated empirical models. An overview of Finnish household space heating is included. Residential space heating system is a long-term investment, and the sector forms a significant part of energy consumption. The theoretical framework builds on the random utility theory and discrete choice models. With binomial logit formulations, we study the factors that impact the ground source heat pump adoption and the determinants to acquire innovative supplementary heating systems. Study of the primary heating system choice determinants among five distinct alternative categories is done with a multinomial logit model. The dependent variables are actual heating system choices. The survey design gives us the chance to observe stated preferences as explanatory variables.

We discover substantial heterogeneity in consumer preferences. There are statistically significant explanatory variables related to socio-demographics, house-type, the geographical area and heating system specific factors. Variable cost is the largest driver for ground source heat pump selection. Other issues that have a considerable impact are system comfort, larger home, self-sufficiency requirement and expert opinions. Innovative supplementary heating system as a part of hybrid generation can create significant efficiency gains. The determinants to acquire such system suggest the desire to remain interconnected with the grid, whereas investment cost can hinder the adoption. Energy performance certificate seems to drive the air-source heat pump choice. It appears that impacting variable price expectations could alter heating system choice. The multinomial analysis implies to cost and comfort considerations having a bigger impact than environmental attitudes. Post-decision satisfaction comments suggest a considerable need for system function check-up including the settings, especially for the heat pumps.

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Copyright information: © Jouni Räihä, 2019. This publication is copyrighted. You may download, display and print it for your own personal use. Commercial use is prohibited.