Internationally, biofuel is being promoted for two main reasons – to fight with climate change and to reduce dependency on fossil fuel. Besides fighting with climate change and oil dependency, the promotion of biofuel in Cambodia is motivated to reduce rural poverty through energy supply at low cost. Most of literature on Cambodia Jatropha curcas is very positive toward the contribution of climate change, oil independency, especially the rural area, and poverty reduction.
Although biofuels are promoted internationally and domestically, the practical efforts for the promotion of biofuel is still debatable. Some prominent on bio-energy claimed that biofuel will contribute to higher concentration of green house gas, on one hand. On the other hand, many experts argued that bio-energy will greatly help to mitigate climate if a proper selection of source of plants, place and land use. Jatropha is, then, arguably introduced for biodiesel.
This study will, then, employ costs and benefits analysis to examine the all potential costs and benefits by setting two scenarios: (1) calculate the net present value of existing plantation regarding in a two setting manly, “Without” and “With” biodiesel production and (2) calculate the environmental net present value of expanding plantation regarding in a two setting manly, “Without” and “With” biodiesel production.