Does climate change stimulate household vulnerability and income diversity? Evidence from southern coastal region of Bangladesh

Bangladesh is one of the most climate-vulnerable countries globally, where the livelihood of agro-based dependent people became vulnerable due to different natural hazards, especially in the southern coastal part. This study investigates the influence of climate change on household vulnerability and income diversity, data collected from the climate-vulnerable coastal areas of Bangladesh. Both panel data regression and structural equation model were employed to examine the vulnerability status, whereas income diversity was measured through diversity index and “Type-66” livelihood strategy. Results reveal that sources of income have diversified over time. However, the study also reveals that climate change-especially the increase in salinity has affected crop production, resulting in increased income vulnerability of small and marginal farmers who are highly reliant on farm income. Moreover, findings reveal that climate change has influenced households to diversify into low-income sources that do not help to overcome their income vulnerability. Therefore, a cooperative land management system, establishment of embankment, training, and skill development programs are needed to generate feasible alternative income sources to improve the livelihood of coastal people.