Water access and household economic insecurity: conceptual framework and econometric analysis applied to rural Nepal

Abstract

We develop a conceptual framework to understand linkages between water access and livelihood outcomes. We apply the framework to assess factors altering the likelihood of household indebtedness in rural Nepal, using survey data and probit statistical models. Controlling for different household characteristics, results show that in Nepal’s Kamala basin, an additional month of water adequate to sustain crops decreases by 5% the likelihood that an average household in our sample reports high indebtedness. We complement our findings by discussing interacting drivers of agricultural livelihood outcomes; options to improve water availability and access; and geographical targeting of investment in water access.