_____________________________________________________________________________________________________ *Corresponding author: E-mail: fatmaribi@gmail.com; International Journal of Environment and Climate Change 10(12): 422-430, 2020; Article no.IJECC.64180 ISSN: 2581-8627 (Past name: British Journal of Environment & Climate Change, Past ISSN: 2231–4784) Effect of Livelihood Interactions on Farmers' Adaptive Capacity to Climate Change: Insight from Medenine Governorate, Southeast Tunisia Fatma Aribi 1,2* and Mongi Sghaier 1 1 Arid Regions Institute of Medenine (IRA), Laboratory of Economy and Rural Societies, Medenine, Gabes University, Tunisia. 2 Department of Agricultural and Agri-Food Economy, National Agronomic Institute of Tunis, Tunisia. Authors’ contributions This work was carried out in collaboration between both authors. Authors FA and MS conceptualized the study, performed the statistical analysis, wrote the methodology, wrote and edited the final version of the manuscript. Both authors read and approved the final manuscript. Article Information DOI: 10.9734/IJECC/2020/v10i1230319 Editor(s): (1) Dr. Arjun B. Chhetri, Dalhousie University, Canada. Reviewers: (1) Berhanu Bekele Abuwa, Hawassa University, Ethiopia. (2) Hemant Kumar, Sam Higginbottom University of Agriculture, Technology and Sciences (SHUATS), India. Complete Peer review History: http://www.sdiarticle4.com/review-history/64180 Received 25 October 2020 Accepted 29 December 2020 Published 31 December 2020 ABSTRACT The Sustainable Livelihood Approach (SLA) assumes that all capitals are complementary and that more capital assets would lead to greater adaptive capacity. However, the SLA neglects the interactions and transformations between different livelihood capitals. This paper suggests a methodological approach to understand how different capitals may be structured, transformed, and used to improve the farm households’ adaptive capacity to climatic stresses. Data for this study were gathered by means of a questionnaire survey during 2018 from 100 farm households representing the main farming systems of Medenine governorate, Southeast of Tunisia. The analyses were carried out using three tools following a stepwise approach. First, to understand the interactions that exist between the different capitals, a Principal Component Analysis (PCA) was carried out. Then, the adaptive capacity was calculated using the PCA results. Finally, using the Pearson's correlation index, the impact of livelihood assets on adaptive capacity was tested. The results demonstrated that households are trying to compensate for the lack of certain assets through interactions with others in order to improve their adaptive capacity. Moreover, human, Original Research Article