Impact of Micro Hydropower Projects on Household Income, Expenditure and Diversification of Livelihood Strategies in Azad Jammu and Kashmir

Abstract

The study examines the impact of Micro Hydropower (MHP) projects on households’ income, consumption and diversification of livelihood strategies in District Hattian Bala, Azad Jammu and Kashmir. A multinomial logistic model is used to investigate the possible role of MHP and other control variables on households’ adoption of livelihood strategies. The Results show that MHP-micro hydropower has a positive significant effect on household’s adoption of non-farm and diversified livelihood strategies. These findings suggest that MHP projects in Northern areas of Pakistan could help in improving household’s income and consumption through adoption of high income livelihood strategies. Keywords: Micro Hydropower (MHP), Livelihood Strategies, Income and Expenditures, Poverty Alleviation, Multinomial Logistic Mode