Exploring policy options for a transition to sustainable heating system diffusion using an agent-based simulation

Change in home heating to more efficient and renewable systems is important for a sound climate policy. The present paper aims to identify potential interventions for the uptake of wood-pellet heating in Norway using an agent-based model (ABM). The theoretically based, empirically founded, agent-based simulation demonstrates that financial support, i.e., a stable wood-pellet price, and technical development, i.e., functional reliability improvement, have to be established all at the same time for a successful wood-pellet market to start. Furthermore, a soft intervention through persuading households to use environmentally beneficial heating system is not a promising driver for wood-pellet diffusion. Limitations and suggestions for future work are also discussed.