Abstract
The livelihood rehabilitation plan implemented in the villages displaced by the Nam Theun 2 Dam Hydropower Project has been criticized for the non-sustainable-use of resources and increasing disparity in income. In this research, interviews and analysis of remote sensing image were conducted to understand the current state of natural resources utilization and identified the factors causing the disparity in income among 16 villages which received the same compensation. As a result, forest loss situation in each village was figured out. The disparity in the income can be explained by geographic condition, income structure and literacy rate. The impact of female literacy rate on village income varies depending on its income structure. It has been revealed that villages with lower agricultural production have a larger disparity in income, which can also be correlated to the literacy rate.