Consumer financial resilience to climate change


The collaborative project “Consumer Financial Resilience to Climate Change” (CONFILIENCE) aims to identify weather-related financial risks regarding the wage income of consumers.

It consists of two subprojects.

Subproject 1: Impact-oriented weather and climate services for estimating future financial risks

The first subproject links high-frequency historical weather data with employment data to measure weather effects on individual labor income.

Subproject 2: Causal effects of weather-related changes in wage income on consumer bankruptcies.

The second sub-project focuses on the impact of increasing weather risks on consumer over-indebtedness or insolvency and the role of the regional banking sector in moderating these financial risks. The results are summarized in “heat maps” on climate-related liquidity risks of consumers.