Sivashankar, P.Weerahewa, J.Pushpakumara, D.K.N.G.Galagedara, L.W.2022-02-092022-02-0920159789550481088http://www.erepo.lib.uwu.ac.lk/bitstream/handle/123456789/8325/14-PLT-Factors%20Affecting%20Farmers%27%20Willingness%20to%20Pay%20for%20Jatropha%20.pdf?sequence=1&isAllowed=ySri Lanka in its principle policy aims to produce at least 20% of energy requirement by renewable energy source by 2020. Still not much attention has been paid on bio fuels. Jatropha curcas L. is found to be a potential alternative source of renewable energy since its cultivation and oil extraction contribute to sustainable development, poverty alleviation, combating of desertification, reduction of greenhouse gas emissions and women empowerment in developing countries (Pushpakumara et al, 2008, and Francis et al, 2005). Jatropha has various socio-economic benefits which makes it more economical when cultivated on commercial scale. Like other vegetable oils, Jatropha oil can be used directly in modified diesel engines for automobile applications. Its adaptability to marginal conditions is an advantageous feature, which other oil producing crops do not have (Pushpakumara et al, 2008), thus it has the ability to reclaim problematic lands and restore eroded areas (Francis et al 2005). Jatropha originated biodiesel is less expensive to produce than other energy crops such as rapeseed and soybeans. This study looks at the demand for Jatropha produced biodiesel. Initially, it is unlikely to be used as a substitute for diesel. Jatropha biodiesel or Straight oil can be used at village level to operate farm machinery and for day to day activities at small scale. If there exist a willingness from farmers to use biodiesel at least in short term then Jatropha could be used as an additional income source. By- products of Jatropha biodiesel can also be sold. Thus this study looks at what factors affect rural farmers' willingness to pay for Jatropha biodiesel. Methodology Welfare estimation is based on Indirect utility and Minimum expenditure functions. Lancaster's (1971) theoretical model for demand estimation is expanded to include other empirical variables. Contingent Valuation Method (CVM) can be viewed as a direct measure of welfare change.enAgricultureExport AgricultureCrop ProductionCrop Production TechnologyBio DieselEnvironmental ScienceOther