Application of capital-based approach in the measurement of livelihood sustainability: A case study from the Koshi River basin community in Nepal

Climate change is classified as a global scale issue, since it impacts numerous and varied regions worldwide without regard for anthropogenic or natural geographic borders. However, household livelihood vulnerability and sustainability are influenced by various factors that differ between countries, districts, and communities. The Hindu Kush Himalayan region has been severely affected, as climate change has profoundly impacted the native people’s livelihood, habitation, and physical infrastructure. In order to develop appropriate and effective adaptation strategies, it is necessary to understand the current livelihoods status of local households, to identify underlying factors that affect their livelihood, and to access vulnerability and livelihood sustainability. In this study, researchers collected data by surveying 130 households from the Koshi River basin (KRB) of Nepal. The study was conducted in three different districts, representing various ecological regions within the KRB, including: the Kavre district in the Mid-mountain area, the Sindhuli district in Siwalik Hill, and the Saptari district in the Terai Plains. While the different districts are susceptible to diverse types of climate-induced disasters, all three study areas have suffered huge economic losses in response to climate change. Quantitative assessment of capital-based vulnerability in the rural villages was carried out based on the three dimensions of vulnerability specified by the Sustainable Livelihoods Approach (SLA) and Intergovernmental Panel on Climate Change (IPCC): exposure, sensitivity, and adaptive capacity. The Livelihood Vulnerability Index (LVI) and Sustainable Livelihood Index (SLI) was used to assess these three dimensions of vulnerability and sustainability and incorporated a wide range of socio-economic variables that represent human, physical, natural, financial, and social capitals. 45 sub-component indicators were selected to evaluate the five major capitals and ultimately reflect the three vulnerability dimensions. The results suggest that: 1) Kavre households have higher human capital vulnerability; 2) the Saptari district may be more vulnerable to natural and physical capital, and 3) the Sindhuli district is more vulnerable to financial and social capital. Investigation into the specific impacts of climate change on rural livelihoods in different environments enhances our understanding of the resulting environmental and socioeconomic changes. Furthermore, it helps identify the specific vulnerabilities pertaining to susceptible communities at a micro level and aids governments and scientists in developing targeted, customized, adaptive strategies to address infrastructure construction, education, public health services, skills training, establishment of early warning systems, and community-based risk reduction schemes, as needed.