Accounting for homeowners’ decisions to insulate: A discrete choice model approach in Spain

• A DCE is conducted to assess households’ willingness insulate their homes. Determinants for the adoption of façade thermal insulation are identified. The investment cost required in existing building stock below obtained WTP. subsidy level lower than grants set by aid programs. Increased tax rebate has greater incentive effect soft financing. This paper assesses Spanish thermally homes and drivers that influence such a decision-making process. Stated preference data were collected through discrete choice experiment (DCE). final sample 191 respondents 1,145 observations was analysed use mixed logit model, weighing factors encourage homeowners carry out energy renovations or not. model enables quantitative estimation renovation rates depending on characteristics public support instruments place. results show extremely interested increasing actual willingness-to-pay. Furthermore, it found relevant variety household features (income, age, heating system, etc.), which should be contemplated efficiency policy design. Additionally, case analysis performed comprises 3 categories. reveal different each case, sometimes even unnecessary, although all them Thus, reduce free-riding effect, closer perspective would enable targeted mechanisms towards category. Moreover, performance can improved combining subsidies with other measures as low-interest loans increased rebates, could contribute improving effectiveness expense associated direct grants. Overall, an preferred financing, latter increases low-income households.