Short- and Long-Term Impacts of Climate Extremes (SLICE)

Floods, tropical cyclones, heatwaves, and droughts cause not only substantial direct damages but also have the potential to deteriorate socio-economic development perspectives in the long-term. A systematic understanding of the main impact channels of climate extremes on socio-economic development from the household to the macroeconomic level is missing to date. The SLICE project - funded by the German Federal Ministry of Education and Research via the funding line Economics of Climate Change - aims at closing this gap by providing stakeholder-guided output in terms of scientific publications, policy briefs, open-access datasets and open-source software development.


SLICE aims to

  • identify hotspot countries where the largest environmental forcings impact on the most vulnerable economies. This analysis is based on a comprehensive set of future climate and socio-economic scenarios.
  • inform climate negotiations by estimating the costs averted at low-levels of global warming (1.5-2°C) in accordance with the Paris agreement with higher levels of warming in accordance with current pledges within the National Determined Contributions.
  • continuously cooperate with stakeholders from the World Bank, the International Fund for Agricultural Development, Munich Re and Swiss Re from the reinsurance industry and the rating agency Standard & Poor’s.
  • provide a deep processed-based understanding of how climate extremes impact on socio-economic development trajectories in the short- and long-term, using econometric methods and dynamic modeling approaches.
  • study long-term distributional impacts of climate extremes at the household level, considering relevant metrics such as well-being, health, and education.
  • analyse differences in coping capacities and resilience across high-income and low-income countries at the macroeconomic level, considering socio-economic channels such as disaster insurance, sovereign debt, governance.
  • assess the effectiveness and integrability of adaptation measures from physical means such as building dikes to political instruments such as climate risk insurances and national and international reconstruction aid.

Project partners

The SLICE consortium is a joint project of the Potsdam Institute for Climate Impact Research (Potsdam), Climate Analytics (Berlin), and the Ifo Institute for Economic Research (Munich). It is coordinated by the Potsdam Institute for Climate Impact Research.

Dialogue on the Economics of Climate Change

SLICE is among the projects sponsored by the BMBF funding measure Economics of Climate Change II that aims to provide solution-oriented knowledge in the field of climate economics. To support transfer of knowledge and to intensify the exchange between scientists and practitioners, the funding measure is supported by the Dialogue on the Economics of Climate Change.