That said, one of the major challenges of developing vulnerability
indicators is the unit of analysis (Hinkel, 2011). Here it is crucial
that local interpretations and assessments take into account the
wider political, institutional, economic and social factors that
determine vulnerability, as expressed by the concept of ‘‘contextual
vulnerability’’ (O’Brien et al., 2007; (Preston et al., 2011)). They
not only determine vulnerability but also influence adaptation outcomes.
The institutional rules that govern the ways in which individuals
and households respond to environmental shocks and
changing trends, for example, also play a large role in adaptive
capacity