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Since the 1970s energy crises, and increasingly in recent years, ground source heat pumps have attracted large interest as an instrument for energy conservation. Rapid growth of the industry has raised questions about the environmental benefits and costs of heat pumps. Governments have designed policies to both promote and regulate the industry. This study concentrates on the development of the ground source heat pump industry in Finland, and on national policies and regulations concerning the industry. The focus is on practitioners' responses to heat pump legislation, a topic so far overlooked by researchers, but also the users’ perspective is considered. The study is based on interviews and questionnaire responses from heat pump professionals, heat pump statistics, and literature. Six sectors of legislation and environmental policy are considered: the regulation of ozone depleting substances and greenhouse gases in refrigerants, qualification requirements imposed on the ground source heat pump industry, the permission procedure for ground loop heat exchangers, legislation on groundwater protection, requirements and incentives for heat pump efficiency and labelling, and public funding and subsidies for the industry. The results show that policies have an important role in the development of the industry, and that quality aspects deserve more attention in policies regarding e.g. GSHP training and planning permissions. [ABSTRACT FROM AUTHOR]