Social cost–benefit analysis of Karnataka Watershed Development (KAWAD) project, Karnataka, India

Abstract

This paper presents results of a social cost–benefit analysis (CBA) of afforestation and soil moisture treatment of common lands under an integrated watershed development programme in Karnataka State, India. The aim of the study was to find out if soil moisture conservation and afforestation measures were justified in terms of economic efficiency. The assessment was undertaken by calculating the economic internal rate of return (EIRR) for five village common lands in two watersheds, Uparhalla and Chinnahagari, in central Karnataka. Focused group discussions were organised, using a semi-structured questionnaire and various stakeholders, including project implementing agencies, self help groups and other community-based organisations. The attractiveness of the programme in both watersheds for landless and land owners was high in three out of five sampled villages, with an EIRR ranging from 19% to 91%, while two villages in Chinnahagari watershed had extremely low EIRR, reflecting poor management of soil moisture and afforestation interventions and lack of institutional cohesion to sustain investments made to develop common lands. Therefore, the CBA conducted in the KAWAD project, except for two villages, shows that the investment made to develop common lands should yield substantial economic returns in the long term under a business as usual scenario.