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Energies 2016, 9(6), 407; doi:10.3390/en9060407

Exploring the Spatial Heterogeneity of Individual Preferences for Ambient Heating Systems

1
Department of Land, Environment, Agriculture and Forestry, University of Padova, 35122 Padova, Italy
2
Durham University Business School, Durham University, DH1 3LB Durham, UK
3
Department of Economics, Waikato Management School, University of Waikato, 3216 Hamilton, New Zealand
4
Department of Business Economics, University of Verona, 37129 Verona, Italy
5
Institute for Choice, University of South Australia, SA 5001 Adelaide, Australia
6
Department of Economics and Management, University of Padova, 35122 Padova, Italy
*
Author to whom correspondence should be addressed.
Academic Editor: Erik Gawel
Received: 2 April 2016 / Revised: 6 May 2016 / Accepted: 19 May 2016 / Published: 25 May 2016
(This article belongs to the Special Issue Agriculture and Energy)
View Full-Text   |   Download PDF [1514 KB, uploaded 25 May 2016]   |  

Abstract

The estimation and policy use of spatially explicit discrete choice models has yet to receive serious attention from practitioners. In this study we aim to analyze how geographical variables influence individuals’ sensitivity to key features of heating systems, namely investment cost and CO2 emissions. This is of particular policy interest as heating systems are strongly connected to two major current environmental issues: emissions of pollutants and increased use of renewable resources. We estimate a mixed logit model (MXL) to spatially characterize preference heterogeneity in the mountainous North East of Italy. Our results show that geographical variables are significant sources of variation of individual’s sensitivity to the investigated attributes of the system. We generate maps to show how the willingness to pay to avoid CO2 emissions varies across the region and to validate our estimates ex-post. We discuss why this could be a promising approach to inform applied policy decisions. View Full-Text
Keywords: mixed logit model; spatial variables; ambient heating systems choices; willingness to pay mixed logit model; spatial variables; ambient heating systems choices; willingness to pay
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Franceschinis, C.; Scarpa, R.; Thiene, M.; Rose, J.; Moretto, M.; Cavalli, R. Exploring the Spatial Heterogeneity of Individual Preferences for Ambient Heating Systems. Energies 2016, 9, 407.

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