Drafts are actually not cold air coming in from the outside, but the warm air flow escaping through cracks or leaks in the windows or walls. Most basements are situated below ground, which acts as a type of insulator. In colder regions, the outside air is colder than the ground. This helps to keep basement walls warmer and lessens the amount of heat loss. The amount of heat lost in the basement determines the appropriate type of heating system required.
The options for heating a basement do not differ much from the ones that are available to heat the rest of the house. A standard option that is often addressed during the construction of the home is forced air heating through the furnace via ductwork throughout. Another option is electric heat through wall space heaters, portable heaters or baseboards. Hot water heat through the use of radiators or baseboard heaters and radiant floor heating are other options; however these are more expensive to install.
The forced air option is the most energy efficient and the less expensive if the ductwork is already in place prior to finishing the basement. Depending on the ductwork present in the basement, you may need to add a few ducts, which adds a little to the install expense. Electric heat is inexpensive to install, but can be costly to run based on electricity rates in your region and the wattage of the heaters. Hot water heat is slightly more expensive to install, but is cheap to operate and may be worth the extra installation expense.
A radiant heat system is a viable option for a basement; however there are some limitations and higher expenses involved. Hot water is circulated through a complex piping system underneath the flooring. The piping is laid in a concrete slab, which heats up as the hot water circulates through the pipes. The concrete retains the heat, which rises to provide heat for the area. Electric radiant heat is expensive to install and operate. Wood flooring is not recommended with a radiant floor heating system as the hot water may warp the wood.