In the cold climate of continental Europe the correction of thermal bridges in buildings is a mandatory issue, as in these areas they produce not only heat losses but frequently also condensation and mould growth. In mild Mediterranean climate thermal bridges also cause an increase in energy consumption, but usually do not present condensation effects. In Italy, the current regulations for new buildings only recommend but do not impose the thermal bridge correction, which usually needs extra costs during construction and refurbishment phases. This paper presents a study on the effects of thermal bridges for two building types (terraced houses and semi-detached houses) and three current envelope solutions in Italian climate, which may be considered representative of mild Mediterranean climate. The buildings are characterised by reinforced concrete frameworks and clay block walls; the thermal performance of the envelopes complies with Italian regulations for new constructions. In a first step the impact of thermal bridges on both heating and cooling energy demand is studied; then the economic convenience of correcting such thermal bridges is assessed by calculating the discounted payback period referred to the additional costs of construction and refurbishment. (C) 2011 Elsevier B.V. All rights reserved.