Space Heating Preferences in Households: Nested Logit Model Approach in Turkey

Abstract

Turkish economy with its robust growth performance over the last few decades has brought on the agenda the energy deficit problem together with ever-rising foreign account deficits. Since almost 80% of the energy demand is met through imported fossil resources. In this perspective, household fuel choice is crucial, since it makes up a substantial part of total energy demand. Furthermore, traditional fuels are important sources of indoor air pollution and related health hazards. For this reason, in this study the cross-sectional data obtained from the Household Budget Survey conducted by the Turkish Statistical Institute, containing a total of 47,573 households, is used. Multinomial Probit and Nested Logit models are utilized to determine the factors affecting Turkish household heating preferences. According to esti-mations, dwelling characteristics such as type, age, size and heating system of dwellings are generally found to be an important predictors of fuel choice. Moreover, household characteristics, such as income, education level, spending and saving habits, household size, employment status, marital status, and credit card ownership are generally found to be statistically significant factors. Finally, it is suggested that government support is important for a smooth transition from traditional fuels to modern fuels.(c) 2022 Elsevier B.V. All rights reserved.