ABSTRACT

Household heating is recognized as one of the most challenging sectors to decarbonize. There is strong inertia in the system, which is made up of many small actors and in which low-carbon technologies are not well established. In many parts of the world, policy makers are only just beginning to tackle emission reductions in the sector.

In this chapter, we apply the FTT:Heat model of technology diffusion within household heating to assess policies to promote low-carbon heating systems. Our results show that a decarbonization of residential heating in East Asia is achievable by 2050, based on existing technologies, and assuming improved insulation of houses. However, such a decarbonization requires substantial policy efforts from 2020 onwards, involving both residential carbon taxes and subsidy payments for renewable heating options. As in the other chapters, policy mixes are projected to be more effective than a sole carbon tax for driving the take-up of low-carbon systems. Such mixes could lead to a combination of both lower emission levels and reduced cost burdens for households.