If you go to any village on the outskirts of the city (where there is no gas), almost everyone there will have a wood furnace used for central heating and hot water. These furnaces can fairly easily (with some financial investment) be converted to burn pellets, which burns a lot cleaner. These are sealed systems in a basement, not for ambiance as the sister comment suggests.
Even in the city there are still enough old houses without gas to cause problems. My walk to the office goes past a couple of these, and I can feel the air quality is worse in this area.
Newer houses usually use electric heat pumps, but older houses are poorly insulated so that would be very expensive there.
I'm thinking myself about installing some electric infrared panels due to spouse that keeps turning the termostat up and up to uncomfortable levels, or wants to burn wood.