Individual Heating systems vs. District Heating systems: What will consumers pay for convenience?

With willingness-to-pay (WTP) defined as the price ratio between IH and DH, 800 survey respondents indicate a WTP of 4.0% for DH over IH. IH users unfamiliar with DH expect little greater convenience (0.1% WTP), whereas the WTP for DH users runs to 7.9%, demonstrating consumer loyalty. Quantified estimates of consumer preference and convenience can inform design of a full-cost-plus pricing system with a price cap. Results here indirectly predict the effect of abolishing regulations that exclusively establish district heating zones. Strategies to foster the many external benefits of DH systems should stress not their lower cost, but convenience, comfort, and safety. Higher installation costs still hamper DH expansion, so policy-makers could set policies to lower cost barriers to entry.