zvingilaite, Erika and Klinge Jacobsen, Henrik (2012): Heat savings and heat generation technologies: Modelling of residential investment behaviour with local externalities.
Download (378kB) | Preview
The trade off between investing in energy savings in single family houses and investing in more expensive heating technologies with low variable costs has been modelled for a number of building and consumer categories in Denmark. The households have an option to combine their primary heating source with secondary heating e.g. woodstove. We address increased indoor air pollution with fine particles, which are potentially harmful to human health, when using a woodstove, in order to represent a close proximity to and tangibility of the environmental and health problems of air pollution for private consumers. We integrate health cost into household optimisation of woodstove use as secondary heating source. We investigate whether the monetary value of the possible health damage has an effect on the optimal consumers’ choice of a heating technology and heat savings. The results show that due to combination of low costs of primary fuel and low environmental performance of woodstoves today, included health costs lead to decreased secondary heating. Overall the interdependence of heat generation technology and heat savings is significant. The optimal level of heat savings for private consumers decrease by 66% when all have the option to shift to the technology with lowest variable costs.
|Item Type:||MPRA Paper|
|Original Title:||Heat savings and heat generation technologies: Modelling of residential investment behaviour with local externalities|
|Keywords:||Energy savings; externalities; modelling; residential heating; rebound|
|Subjects:||Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q41 - Demand and Supply ; Prices
Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q53 - Air Pollution ; Water Pollution ; Noise ; Hazardous Waste ; Solid Waste ; Recycling
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies
|Depositing User:||Henrik Klinge Jacobsen|
|Date Deposited:||25. Sep 2012 13:45|
|Last Modified:||22. Aug 2015 07:22|
Amstalden R. W., Kost M., Nathani C., Imboden D. M., 2007. Economic potential of energy-efficient retrofitting in the Swiss residential building sector: The effects of policy instruments and energy price expectation. Energy Policy, 35, 1819-1829.
Banfi S., Farsi M., Filippini M., Jacob M., 2008. Willingness to pay for energy-saving measures in residential buildings. Energy Economics, 30, 503-516.
Brandt et al., CEEH Scientific Report No 3: Assessment of Health Cost Externalities of Air Pollution at the National Level using the EVA Model System, Centre for Energy, Environment and Health, Roskilde.
Clinch J. P., Healy J. D., 2001. Cots-benefit analysis of domestic energy efficiency. Energy Policy, 29, 113-124.
DEA, 2011. Energy Statistics 2009. Danish Energy Agency. www.ens.dk, accessed February 1st 2011.
Danish Energy Agency, 2011. Forudsætninger for samfundsøkonomiske analyser (Recommendations for assumptions in socioeconomic studies of energy sector; in Danish). Copenhagen, April 2011.
DERA, 2011. Natural gas and electricity prices. Danish Energy Regulatory Authority, www.energitilsynet.dk, accessed August 11th 2011.
Danish Ecological Council, 2012. Akut behov for afgift på brændeovne (Urgent need for woodstove taxes; in Danish), www. Ecocouncil.dk, accessed April 19th 2012.
Dong Energy homepage, 2012. www.dongenergy.dk, accessed April 19th 2012. European Commission, 2011. Database on Energy Saving Potentials, www.eepotential.eu, accessed February 1st 2011.
Evald A., 2010. Brændeforbrug i Danmark 2009 (Wood consumption in Denmark; in Danish). Force Technology.
EOF, 2011. Oil prices. Danish Oil Industry Association, www.eof.dk, accessed August 11th 2011.
Gaterell M. R., McEvoy M. E., 2005. The impact of energy externalities on the cost effectiveness of energy efficiency measures applied to dwellings. Energy and Buildings, 37, 1017-1027.
Giraudet L. G., Guivarch C., Quirion P., 2012 Exploring the potential for energy conservation in French households through hybrid modelling. Energy Economics 34 (2), p. 426-445.
Grønvald, 2007. Her er de 10 bedste brændeovne (Her are the 10 best woodstoves; in Danish), http://fpn.dk/bolig/article1050462.ece, accessed April 19th 2012.
IPCC, 2007. Climate Change 2007: Mitigation of Climate Change. Contribution of working group III to the fourth assessment report of the Intergovernmental Panel on Climate Change, Metz B., Davidson O. R., Bosch P. R., Dave R., Meyer L. A. (ends), Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA.
Jakob M., 2006. Marginal costs and co-benefits of energy efficiency investments. The case of the Swiss residential sector. Energy Policy, 34, 172-187.
Jacobsen H.K., 2001. Technological progress and long-term energy demand. A survey of recent approaches and a Danish case, Energy Policy, 29 (2), 147-157.
Karlsson K. B., Balyk O., Zvingilaite E., Hedegaard K., 2011. District heating versus individual heating in a 100% renewable energy system by 2050. Presented at 6th Dubrovnik Conference on Sustainable Development of Energy Water and Environment Systems, Dubrovnik, Croatia, 25-29 September 2011.
Kragh J., Wittchen K. B., 2010. Danske bygningers energibehov i 2050 (Energy demand of the Danish buildings in 2050; in Danish). Aalborg university, 2010. Lund H., Möller B., Mathiesen B.V., Dyrelund A., 2010. The role of district heating in future renewable energy systems, Energy 35, 1381-1390.
Mathiesen B. V., Lund H., Connolly D., 2011. Heating technologies for limiting biomass consumption in 100% renewable energy systems. Presented at 6th Dubrovnik Conference on Sustainable Development of Energy Water and Environment Systems, Dubrovnik, Croatia, 25-29 September 2011.
Möller B., 2008. A heat atlas for demand and supply management in Denmark, Management of Environmental Quality: An International Journal 19, 467-479.
Nielsen O. K. et al., 2010. Annual Danish informative inventory report to UNECE. Emission inventories from the base year of the protocols to year 2008. National Environmental Research Institute, Aarhus University.
ODYSSEE, 2009. Energy efficiency trends by sectors in Europe. Households, updated December, 2009. www.odyssee-indicators.org, accessed December 1st 2010.
Olesen H. R., Wåhlin P., Illerup J. B., 2010. Brændefyrings bidrag til luftforurening (Contribution of wood combustion to air pollution; in Danish). Danmarks Miljøundersøgelser (National Environmental Research Institute), Aarhus University.
Petersen L. K., 2008. Autonomy and proximity in household heating practices: the case of wood-burning stoves. Journal of Environmental Policy and Planning, 10:4, 423-438.
Pope C. A. III, Dockery D. W., 2006. Health effects of fine particulate air pollution: lines that connect. J. Air & Waste Manage. Assoc., 56, 709–742.
Rambøll Danmark, 2008. Varmeplan Danmark, Bilagsrapport (Heat Plan Denmark, Appendix report; in Danish), Dansk Fjernvarme (The Danish District Heating Association), Virum.
Siller T., Kost M., Imboden D., 2007. Long-term energy savings and greenhouse gas emission reductions in the Swiss residential sector. Energy Policy, 35, 529-539.
Sønderskovhjemmet, 2011. Wood prices, www.sønderskovhjemmet.dk, accessed August 11th 2011.
Sydjyskstoker, 2011. Wood pellet prices, www.sydjyskstoker.dk, accessed August 11th 2011.
Tommerup H. (Ed), 2010. Energirenoveringstiltag – katalog (Catalogue of energy saving measures; in Danish), Technical University of Denmark.
Tommerup H., Svendsen S., 2006. Energy savings in Danish residential building stock. Energy and Buildings, 38, 618-626.
Wittchen K. B., 2004. Vurdering af potentialet for varmebesparelser i eksisterende boliger (Assessment of the heat saving potential in the existing dwellings; in Danish), Aalborg University, Hørsholm.
WOODUSE project homepage, 2009. wooduse.dmu.dk accessed April 19th 2012.
Zvingilaite E., Balyk O., 2012. Modelling of heat supply and heat savings in a 100 % renewable heat and power system in Denmark, draft paper.