Sustainable Development

Sustainable Development at a glance

Research profile

Economics of Climate Change

Coping with extreme weather events such as droughts, floods, and storms is a major part of life in many developing and transitioning countries, where public safety nets and formal insurance often work to only a limited extent. Because private households are forced to insure themselves against these events and manage the consequences with limited support, these occurrences can trigger a vicious cycle of poverty, shocks, and underdevelopment. The Sustainable Development Research Group addresses these issues from an applied microeconomic perspective. Other research areas include the relationship between extreme weather events and migration as well as the distribution effects of shocks, such as their effects on income and poverty. The group’s empirical research uses data from longitudinal household surveys, some of which are collected by the researchers themselves.

 Evaluating Policy Measures

The research group also investigates how policy measures impact the quality of life of individuals in developing and transitioning countries. The focus is on policy measures that are intended to strengthen the resilience of households in the face of shocks – such as index-based weather insurance and access to weather forecasts. Randomized field experiments as well as quasi-experimental methods are used for this purpose.