This project analyzes the impact of climate shocks on the livelihoods and welfare of households in Mongolia. Our analysis particularly focuses on extreme weather events, locally called dzud disasters (see box below). As a consequence of climate change and global warming, it is very likely that climate shocks, such as dzud, will occur more frequently and with greater intensity. As part of the project, we will conduct a unique household panel survey in western Mongolia. Using micro econometric techniques, the project explores the strategies of households to cope with climate shocks and the effects of climate shocks on inequality. Understanding how households at the micro-level are affected by and cope with climate shocks is an important prerequisite for formulating policies that strengthen household-level resilience and prevent distress migration.