An Integrated Cost–Benefit and Livelihood Approach for Assessing the Impact of Water Harvesting Techniques (WHTs) on Livelihoods: A Case Study in the Oum Zessar Watershed, South-East Tunisia

Despite broad interest in use of water harvesting techniques (WHTs) to reduce pressure on natural resources in arid zones, few ex post assessments are available on how WHTs impact livelihood sustainability. This paper assesses the impact of WHTs on the livelihood conditions of inhabitants in the Oum Zessar watershed in south-east Tunisia. We used an integrated impact assessment (IIA) framework incorporating extended cost–benefit analysis (ECBA) and the sustainable livelihoods approach (SLA). The former internalizes environmental impacts while the latter enables assessment of the contributions of WHTs to rural livelihoods in the watershed. We began by using ECBA to estimate the profitability of investments in WHTs. We then scaled up our impact perspective from the local level to the watershed level using SLA based on survey data from beneficiary households upstream, midstream and downstream. Our goal was to better understand and evaluate changes in livelihoods and associated environmental effects. We focused on the links between cost–benefit of WHTs and sustainable livelihoods, looking in particular at the capitals that connect the two. Our ECBA results suggest that WHT techniques did benefit the local population at both the private and the social level (IRR > 20%; NPV > 2000 TD/ha). Sensitivity analysis confirmed this result. SLA findings point to a central role of social capital in promoting sustainable livelihoods, followed by physical capital enhanced by WHTs construction, especially in the upstream and downstream segments of the watershed. Recommendations were derived from these outcomes for more integrated watershed management policy.