Unlocking the Economy Wide Benefits of Heat Pumps - The Role of Electricity and Gas Prices
Turner, Karen and Katris, Antonios and Calvillo, Christian and Stewart, Jamie and Zhou, Long (2023) Unlocking the Economy Wide Benefits of Heat Pumps - The Role of Electricity and Gas Prices. UK Energy Research Centre, [London]. (https://doi.org/10.5286/ukerc.edc.000959)
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Abstract
This briefing considers the economic gains that could be realised through the deployment of heat pumps for the decarbonisation of residential heat. Heat pumps are more efficient that gas heating systems and can ultimately lead to important energy demand reduction across the residential sector. However, under prevailing market conditions where the retail price of electricity is high relative to gas, the bills savings and wider economy benefits usually associated with substantial energy efficiency increases are not evident. In this paper we focus on how, and to what extent, the electricity-gas price differential determines whether the energy efficiency properties of heat pumps will lead to energy bill saving for UK households. This issue becomes increasingly important when we consider how the changes in household energy bills and real spending power can drive a wide range of economy wide impacts.
ORCID iDs
Turner, Karen, Katris, Antonios

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Item type: Report ID code: 85812 Dates: DateEvent29 March 2023PublishedKeywords: low carbon heat, electrification of heat, energy policy, economic modelling, energy system modelling, Production of Electric Energy or Power, Input-output Analysis. Interindustry Economics, Renewable Energy, Sustainability and the Environment, Economics and Econometrics, SDG 7 - Affordable and Clean Energy Subjects: Technology > Electrical engineering. Electronics Nuclear engineering > Production of electric energy or power
Social Sciences > Economic Theory > Methodology > Mathematical economics. Quantitative methods > Input-output analysis. Interindustry economicsDepartment: Strategic Research Themes > Energy
Faculty of Humanities and Social Sciences (HaSS) > School of Government and Public Policy > PoliticsDepositing user: Pure Administrator Date deposited: 15 Jun 2023 12:54 Last modified: 20 Jul 2023 09:08 URI: https://strathprints.strath.ac.uk/id/eprint/85812