Impacts of Livelihood Assets on Hydropower Displacees Livelihood Strategies: Insights from the Tanahu Hydropower Project in Nepal

Examining livelihood assets is crucial for displaced people, as it informs effective resource allocation and support. This study investigates the livelihood decisions of households displaced by Nepal's Tanahu Hydropower Project, using multinomial logistic regression to assess how different assets affect their choices. It finds that physical assets significantly influence livelihood strategies, promoting diversification and non-farm activities. Surprisingly, social assets have a negative impact, while natural, financial, and human assets show no significant effect. The research highlights the community's focus on economic stability, balancing immediate financial needs with long-term goals like children's education. However, it reveals ongoing financial struggles, with an average daily income of only 1.962 USD and many households remaining in poverty, especially those dependent on farming. The study also reflects on the mixed perceptions towards government policies, influenced by factors such as skill gaps and family aspirations. These findings provide essential insights for targeted support and resource allocation to displaced populations.