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Estimating the willingness to pay for Warmer and Drier Homes.

Gibson, J. and Scarpa, R. and Rohorua, H. (2017) 'Estimating the willingness to pay for Warmer and Drier Homes.', New Zealand economic papers., 51 (1). pp. 15-27.


New Zealand is one of several countries to use subsidies for retrofitting insulation and installing improved heating devices such as heat pumps. The valuation of these devices by the affected populations remains unknown. We investigate willingness to pay for such devices, using a choice experiment with a sample of Pacific Islanders in the upper North Island. This is a high-risk group for respiratory disease, who typically rent crowded and inadequately heated dwellings. Using both conditional logit and panel mixed logit models, we find reasonably precise estimates of the willingness to pay for four improved heating and humidity control devices, which would cover the capital costs of two of the devices, and about three-quarters of the cost of the other two devices.

Item Type:Article
Full text:(AM) Accepted Manuscript
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Publisher statement:This is an Accepted Manuscript of an article published by Taylor & Francis Group in New Zealand Economic Papers on 07/11/2015, available online at:
Date accepted:12 October 2015
Date deposited:13 February 2017
Date of first online publication:07 November 2015
Date first made open access:07 May 2017

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