Dynamics of household welfare change and analysis of coping strategies during floods: an empirical investigation

Abstract

PurposeThis study aims to understand the socioeconomic impact of flood events on households, especially household welfare in terms of changes in consumption and coping strategies to deal with flood risk. This study is based on Bihar, one of the most frequently flood-affected, most populous and economically backward states in India.Design/methodology/approachPrimary data were collected from 700 households in the seven most frequently flood-affected districts in Bihar. A total of 100 individuals from each district were randomly selected from flood-affected villages. Based on a detailed literature review, an econometric (probit) model was developed to test the null hypothesis of the availability of consumption insurance, and the multivariate probability approach was used to analyze the various coping strategies of these households.FindingsThe results of this study suggest that flood-affected households maintain their consumption by overcoming various losses, including income, house damage and livestock loss. Households depend on financial transfers, borrowings and relief, and migrate to overcome losses. Borrowing could be an extra burden as the government compensates for house damage and crop loss late to the affected households. Again, there is no compensation to overcome livelihood loss and deal with occurrences of post-flood diseases, which further emphasizes the policy implications of strengthening the health infrastructure in the state and generating alternative livelihood opportunities.Originality/valueThis study discusses flood risk in terms of changes in household welfare, identifies the most effective risk-coping capabilities of rural communities and contributes to the shortcomings of the government insurance and relief model.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-07-2023-0569