WP4 - Modelling long-term household-level development impacts

WP4 aims for a deeper understanding of the channels and mechanisms which translate immediate impacts of extreme events on households into long-term consequences for economic development and poverty levels. This tends to be overlooked in aggregated macroeconomic approaches and is not reflected in aggregate GDP impact assessments for climate change. However, extreme events might force especially poor households to prioritize immediate consumption over investments into health, education, or productive capital, affecting long-term development prospects. WP4 will develop a household-level model to study these investment dynamics based on empirical input from WP3. The results will facilitate further studies on the impact of climate change on the sustainable development goals, in particular those on poverty and education.