Reproducibility package for From Risk to Resilience: Insights on the Impacts of Climate and Climate Policies on Welfare

Climate change is intensifying extreme weather such as heatwaves, drought, and erratic rainfall, threatening to reverse hard-won welfare gains. This burden is not shared equally. For the poorest 40 percent, projected income losses from climate change are roughly 70 percent larger, relative to their income, than for the average population (Hallegatte & Rozenberg, 2017). However, climate risk extends well beyond the poorest. Middle-income households can be highly exposed due to their physical locations, jobs, and businesses. Changing weather conditions disrupt household welfare through many channels, from direct agricultural losses to broader impacts on health, labor productivity, cost of living, and even childhood development. When shocks force families to liquidate productive assets or sacrifice human capital, the damage compounds and can persist even after conditions improve. Quantifying these risks and how they vary at the household level is essential for designing targeted and effective adaptation policy. This report introduces WISE-APP (Weather Impact Simulation and Evaluation for Adaptation Policy and Planning), a flexible micro-simulation tool to quantify these risks, simulate household welfare under future climate and policy scenarios, and bring evidence to country dialogue. The report estimates how weather shocks change household welfare in 21 countries (60 survey waves), simulates welfare under future climate (CMIP6, SSP3-7.0) and evaluates four adaptation policies.