Impact of financial assumptions on the cost optimality towards nearly zero energy buildings - a case study
Abstract
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The assessment literature on climate change solutions to date has emphasized technologies and options based on cost-effectiveness analysis. However, many solutions to climate change mitigation misalign with such analytical frameworks. Here, we examine demand-side solutions, a crucial class of mitigation options that go beyond technological specification and cost-benefit analysis. To do so, we synthesize demand-side mitigation options in the urban, building, transport, and agricultural sectors. We also highlight the specific nature of demand-side solutions in the context of development.
Heat pumps are relatively simple appliances. They share similar components to refrigerators and air conditioners and effectively move an external source of heat to where it is needed, such as in buildings for heating or the production of hot water. Their key value is efficiency; for each unit of electricity consumed to operate them, they produce multiple units of usable heat. Because of this, they require much less energy input for a similar heating outcome compared to combustion technologies, making them naturally cleaner and generally cost effective to run.