Climate Induced Factors Affecting Income Diversification in Flood-Prone Areas of Punjab, Pakistan: An Application of Income Diversification Herfindahl Index

Abstract

Climate change instigating severe threat on global population livelihood more specifically the developing countries alike Pakistan. Rural households of Pakistan predominately depend on farming practices where their livelihood is vulnerable due to severe and repeated threats of flood disasters. In view of income diversification as livelihood strategy regarding life-threatening of floods this research work investigated the factors of income diversification in flood prone areas of Punjab, Pakistan. Multistage random sampling method was applied for data collection of 380 flood-affected households where household-based income diversification was estimated with Herfindahl Index while ordinary least square method applied for regression coefficients estimation. Estimates of this research work shown as households with more educated family members, male household heads and more earning numbers of family having more income diversification profile. Moderation analysis indicated households with aged educated members and male household head more likely to income diversification rather than illiterate households. Findings indicated contradiction with literature as insignificant coefficient of poverty with income diversification in Muzaffargarh district highlighting the inadequate awareness and insufficient economic opportunities reason be more significant factor of income diversification rather than wealth. Policy measure to Pakistan and more particular to rural communities as investing human capital, rising economic opportunities access and formulating awareness strategies of income diversification consider essential to developing rural household’s livelihood sustainability particularly flood prone communities.