Four most important results: 1. Heating energy demand of Swiss households decreases by 0.5% for a 1% decrease in heating degree days. 2. The decrease in heating energy consumption is not offset by an increase in cooling energy consumption. 3. Despite considerable reductions in HDD due to climate change the corresponding decrease in total energy consumption and CO2 emissions is very modest 4. For all emission scenarios the projected welfare gains for 2050 are positive but small (< 0.25% of GDP)