The Role of Economic Well-Being in Supporting Sustainable Livelihoods in Disaster-Prone Rural Areas

The sustainability of livelihoods for communities in disaster-prone areas is determined not only by increased income, the adoption of innovations, or the expansion of community education, but also by the community’s ability to convert these capacities into stable economic well-being. This study aims to develop and test a structural model that positions economic well-being as the key mechanism bridging the effects of community income, green innovation, and community education on sustainable livelihoods, as well as to analyze the role of nongovernmental organizations (NGOs) as institutional moderators. The study was conducted in Sigi Regency, Central Sulawesi, using a quantitative approach involving a survey of 182 households. Data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The research model was constructed by integrating the Sustainable Livelihood Framework, the Capability Approach, and institutional theory. The results indicate that community income, green innovation, and community education have a significant impact on economic well-being and sustainable livelihoods. Economic well-being was found to act as the primary mediator, explaining how improvements in economic capacity, green innovation, and community education can translate into sustainable livelihoods. Furthermore, the role of NGOs was found to strengthen the influence of these three variables on sustainable livelihoods. The novelty of this study lies in the repositioning of economic well-being from merely an outcome of development to a strategic transition mechanism within the Sustainable Livelihood Framework, as well as in testing the role of NGOs as structural moderators in the context of disaster-prone areas