Multidimensional Analysis of Water Poverty and Subjective Well-Being: A Case Study on Local Household Variation in Faisalabad, Pakistan

Water poverty is difficult to evaluate because it is multidimensional. It is determined not only by the availability of water sources but also whether communities have adequate access to clean, uncontaminated water. It is also dependent on the resource needs of those using the water. Under the premise that water scarcity is multidimensional, we use a Water Poverty Index approach using Principal Component Analysis to develop an index at the household level in 10 villages in one large farming community to examine each household’s subjective view of well being as a result of water poverty. This paper reviews how water resources endowments and depletion because of indiscriminate disposal of untreated industrial wastewater, household sewage and climate change are posing serious threats to water poverty at the household level in developing agrarian economies like Pakistan. We report from our results that both the perceived level of pollution and the proximity to clean and polluted water sources matter significantly for subjective well-being in rural households of Pakistan. The villages closer to polluted water sources are unhappier while the villages, which have better access to fresh water, have relatively higher subjective well-being. A strong implementation of environmental protection measures and regional strategies are suggested to alleviate water poverty and increase subjective well-being in local communities.