In the European context of moving to a low-carbon economy, knowledge regarding household decisions surrounding residential heating systems is crucial for policymakers in order to design effective policies both to reduce non-renewable energy consumption and to enhance energy efficiency in the residential sector. The choices made by households concerning decisions on how to heat their homes can significantly influence the related environmental impacts. This research examines two aspects of decision making with respect to heating system upgrades in Italian households using, for the first time, data from the 2013 Italian Households Energy Consumption survey: the choice of using renewable energies for space heating and decision to invest in energy efficient retrofits. Our findings show that household socio-economic characteristics and contextual factors are critical for good decision-making regarding heating system. We also find that previous cash retrofit investments and dwelling characteristics are important determining factors both for the choice of heating system based on renewable sources and for the subsequent decision regarding the adoption of energy efficient retrofit measures.
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