Examining the interstate variations and interlinkage between water poverty and multidimensional poverty in India: evidence from household-level data

Abstract

PurposeThe purpose of the present study is to examine the inter-relationship between the multi-dimensional poverty and water poverty using household level data for Indian states.Design/methodology/approachA modified water poverty index (MWPI) for both rural and urban households was created using the five components approach and various quantifiable proxies. Principal component analysis (PCA) has been used for the construction of MWPI. Multidimensionality of poverty (MPI) is measured using the Alkire and Foster methodology. Further, the study has utilized correlation and Tobit regression analysis to show the relationship between MWPI and MPI.FindingsThe empirical findings suggest that there is a positive and significant relationship between multidimensional poverty and water poverty, with the extent of relationship being greater in rural areas. The results show that in rural areas all the components of water poverty has significant impact on multidimensional poverty, whereas in urban areas except use component all others have significant impact on multidimensional poverty. Further, components of multidimensional poverty were also found to be significantly impacting water poverty.Practical implicationsThe study suggests that policymakers cannot treat both forms of poverty in isolation. If India aims to reduce poverty, then it needs to pay significant attention to improving water conditions.Originality/valueThis is a pioneering attempt to construct water poverty index at the household level while accounting for micro-level differences for Indian economy. It highlights that water poverty leads to multi-dimensional poverty and vice-versa.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2021-0731.

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“…Meanwhile, the ownership control variable, which is proxied by the percentage of the population with access to water, has no effect on the poverty level. This is different from the theory presented by Biltonen & Dalton (2003) and Pandey et al (2022) which states that there is a strong relationship between water availability and poverty. However, empirically the results of this study are in line with research Sumardjoko & Akhmadi (2019) which found that access to decent water had no effect on poverty alleviation.…”

“…The lack of access into water is associated with poverty (Biltonen & Dalton, 2003). In line with that, according to Pandey et al (2022), the availability of access to water has a significant impact on various dimensions of human life (Pandey et al, 2022) The last aspect is the prevention of harmful malpractice. Islam stipulates ethics that prohibits its people from taking actions that can harm themselves and others, including in the economy.…”

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“…Urban poverty in India is recognized on the dimensions based on minimum calorific consumption. But nowadays, it is widely accepted that urban poverty is multi-dimensional (Ayala et al, 2011;Pandey et al, 2022;Ravallion, 2011). The critical dimensions of urban poverty include denied access to basic livelihood facilities like clean drinking water, food, sanitation and shelter and advanced rights such as quality education, primary healthcare and financial services (Chaigneau et al, 2019).…”