An electric fireplace heats very cleanly and efficiently, producing no dangerous combustion gases. A ventless gas heater, on the other hand, exhausts small traces of carbon monoxide, a poisonous gas. Ventless gas heaters also expel large amounts of water vapor into the building, a cause of mold and mildew in tightly sealed homes.
Both the gas and electric fireplaces are self-contained units available as wall inserts or free-standing stoves. Yet the flames from a ventless gas fireplace are much more realistic and ambient than the electric fireplace. The electric fireplace needs an electrical receptacle nearby for the power cord, which can be unsightly.
Electric fireplaces usually cost less than ventless gas fireplaces. Electricity rates, however, are usually much higher than natural gas rates, depending on geographic region and availability of fuel and power. Ventless gas fireplaces continue to operate when electrical power is off; electric fireplaces cannot run without electricity.