IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i6p2434-d1609263.html
   My bibliography  Save this article

Environmental Dependence and Economic Vulnerability in Rural Nepal

Author

Listed:
  • Resham Thapa-Parajuli

    (Central Department of Economics, Tribhuvan University, Kirtipur 44618, Nepal)

  • Sanjeev Nhemhafuki

    (Central Department of Economics, Tribhuvan University, Kirtipur 44618, Nepal)

  • Bipin Khadka

    (Central Department of Economics, Tribhuvan University, Kirtipur 44618, Nepal)

  • Roja Pradhananga

    (Central Department of Economics, Tribhuvan University, Kirtipur 44618, Nepal)

Abstract

This article examines the relationship between environmental income dependence and household vulnerability in rural settings. Using household-level livelihood data from the Poverty Environment Network (PEN) dataset of Nepal, we construct a household vulnerability index and analyze its relationship with environmental dependence, measured as the share of environmental income in total income, while controlling for other variables. The findings reveal that higher environmental dependence significantly increases household vulnerability. In contrast, household debt helps mitigate vulnerability by providing financial support and enabling productive investments. However, high dependency ratios and exposure to shocks exacerbate vulnerability by limiting income generation and destabilizing livelihoods. Policy measures such as promoting economic diversification and social safety net programs could reduce environmental dependence and mitigate household vulnerability in rural Nepal. Furthermore, providing timely access to credit during hardships and addressing unforeseen shocks could enhance household resilience.

Suggested Citation

  • Resham Thapa-Parajuli & Sanjeev Nhemhafuki & Bipin Khadka & Roja Pradhananga, 2025. "Environmental Dependence and Economic Vulnerability in Rural Nepal," Sustainability, MDPI, vol. 17(6), pages 1-22, March.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:6:p:2434-:d:1609263
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/6/2434/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/6/2434/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cesar Calvo & Stefan Dercon, 2005. "Measuring Individual Vulnerability," Economics Series Working Papers 229, University of Oxford, Department of Economics.
    2. Angelsen, Arild & Jagger, Pamela & Babigumira, Ronnie & Belcher, Brian & Hogarth, Nicholas J. & Bauch, Simone & Börner, Jan & Smith-Hall, Carsten & Wunder, Sven, 2014. "Environmental Income and Rural Livelihoods: A Global-Comparative Analysis," World Development, Elsevier, vol. 64(S1), pages 12-28.
    3. Philip Antwi-Agyei & Andrew Dougill & Evan Fraser & Lindsay Stringer, 2013. "Characterising the nature of household vulnerability to climate variability: empirical evidence from two regions of Ghana," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(4), pages 903-926, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shackleton, C.M. & Garekae, H. & Sardeshpande, M. & Sinasson Sanni, G. & Twine, W.C., 2024. "Non-timber forest products as poverty traps: Fact or fiction?," Forest Policy and Economics, Elsevier, vol. 158(C).
    2. Evelyn Asante-Yeboah & George Ashiagbor & Kwabena Asubonteng & Stefan Sieber & Justice C. Mensah & Christine Fürst, 2022. "Analyzing Variations in Size and Intensities in Land Use Dynamics for Sustainable Land Use Management: A Case of the Coastal Landscapes of South-Western Ghana," Land, MDPI, vol. 11(6), pages 1-28, May.
    3. Chiwaula, Levison & Waibel, Hermann, 2011. "Does seasonal vulnerability to poverty matter? A case study from the Hadejia-Nguru Wetlands in Nigeria," Proceedings of the German Development Economics Conference, Berlin 2011 19, Verein für Socialpolitik, Research Committee Development Economics.
    4. Duclos, Jean-Yves & Araar, Abdelkrim & Giles, John, 2010. "Chronic and transient poverty: Measurement and estimation, with evidence from China," Journal of Development Economics, Elsevier, vol. 91(2), pages 266-277, March.
    5. Mugido, Worship & Shackleton, Charlie M., 2019. "The contribution of NTFPS to rural livelihoods in different agro-ecological zones of South Africa," Forest Policy and Economics, Elsevier, vol. 109(C).
    6. Alejandro de la Fuente, 2008. "Remittances and Vulnerability to Poverty in Rural Mexico," WIDER Working Paper Series RP2008-17, World Institute for Development Economic Research (UNU-WIDER).
    7. Celidoni, Martina, 2011. "Vulnerability to poverty: An empirical comparison of alternative measures," MPRA Paper 33002, University Library of Munich, Germany.
    8. Hunsberger, Carol & Work, Courtney & Herre, Roman, 2018. "Linking climate change strategies and land conflicts in Cambodia: Evidence from the Greater Aural region," World Development, Elsevier, vol. 108(C), pages 309-320.
    9. Dai, Xuhuan & Li, Bo & Zheng, Hua & Yang, Yanzheng & Yang, Zihan & Peng, Chenchen, 2023. "Can sedentarization decrease the dependence of pastoral livelihoods on ecosystem services?," Ecological Economics, Elsevier, vol. 203(C).
    10. Bierkamp, Sina & Nguyen, Trung Thanh & Grote, Ulrike, 2021. "Environmental income and remittances: Evidence from rural central highlands of Vietnam," Ecological Economics, Elsevier, vol. 179(C).
    11. Ximena Rueda & Andrea Paz & Theodora Gibbs‐Plessl & Ronald Leon & Byron Moyano & Eric F Lambin, 2018. "Smallholders at a Crossroad: Intensify or Fall behind? Exploring Alternative Livelihood Strategies in a Globalized World," Business Strategy and the Environment, Wiley Blackwell, vol. 27(2), pages 215-229, February.
    12. Joos-Vandewalle, S. & Wynberg, R. & Alexander, K.A., 2018. "Dependencies on natural resources in transitioning urban centers of northern Botswana," Ecosystem Services, Elsevier, vol. 30(PC), pages 342-349.
    13. Ahammad, Ronju & Stacey, Natasha & Sunderland, Terry C.H., 2019. "Use and perceived importance of forest ecosystem services in rural livelihoods of Chittagong Hill Tracts, Bangladesh," Ecosystem Services, Elsevier, vol. 35(C), pages 87-98.
    14. Mumbunan, Sonny & Maitri, Ni Made Rahayu, 2022. "A Review of Basic Income for Nature and Climate," OSF Preprints bre43, Center for Open Science.
    15. Tilahun, Mesfin & Damnyag, Lawrence & Anglaaere, Luke C.N., 2016. "The Ankasa Forest Conservation Area of Ghana: Ecosystem service values and on-site REDD+ opportunity cost," Forest Policy and Economics, Elsevier, vol. 73(C), pages 168-176.
    16. Wunder, Sven & Angelsen, Arild & Belcher, Brian, 2014. "Forests, Livelihoods, and Conservation: Broadening the Empirical Base," World Development, Elsevier, vol. 64(S1), pages 1-11.
    17. Begazo Curie, Karin & Mertens, Kewan & Vranken, Liesbet, 2021. "Tenure regimes and remoteness: When does forest income reduce poverty and inequality? A case study from the Peruvian Amazon," Forest Policy and Economics, Elsevier, vol. 128(C).
    18. Montalbano, Pierluigi, 2011. "Trade Openness and Developing Countries' Vulnerability: Concepts, Misconceptions, and Directions for Research," World Development, Elsevier, vol. 39(9), pages 1489-1502, September.
    19. Olli-Pekka Kuusela & Maria S. Bowman & Gregory S. Amacher & Richard B. Howarth & Nadine T. Laporte, 2020. "Does infrastructure and resource access matter for technical efficiency? An empirical analysis of fishing and fuelwood collection in Mozambique," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(3), pages 1811-1837, March.
    20. Katja Landau & Stephan Klasen & Walter Zucchini, 2012. "Measuring Vulnerability to Poverty Using Long-Term Panel Data," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 118, Courant Research Centre PEG.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:6:p:2434-:d:1609263. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.