Senbeta, Feyera(PhD)Getahun, Kefelegn2018-07-302023-11-182018-07-302023-11-182010-06http://etd.aau.edu.et/handle/12345678/10400modern energy sources such as petroleum fuels is increasing with increase in population and economic growth. Even though the share of petroleum fuels is about 7% of the total consumption, the increasing demand for it and the associated price hike have hit the national economy very hard. As a net importer of petroleum, Ethiopia is highly vu lnerable to price shocks and supply problems of oil in the world market. It is therefore the government's priority agenda for alternative fuels to partially substitute imported petroleum. This is the major reason for the government to include large scale commercial production of bio fuels as part of the range of other development programs proposed to insure supply of modern energy services. Bio fuels have a great potential for a number of countries worldwide and have a number of benefits economically, environmentally and socially. On the other hand, it has created a large degree of controversy relating to the issues of its usage and the likely consequences such as loss of biodiversity, deforestation, increased use of fertilizers, which results in green house gas emissions, and also its effect on food security. This study made a thorough investigation on the existing opportunities and threats of Jatropha plantation on the livelihood of rura l community, particularly Offa Woreda,Wolaita Zone. For this purpose adequate data was generated from both primary and secondary sources using various techniques. In the primary data collecting process 100 households and other stakeholders were administered by way of survey questionnaire. The process was backed by discussion; interview and observation in the study area where the author believed that factual information make the paper more meaningful. As has been seen from the practices of bio-fuel development in the study area, almost all lands cultivated for Jatropha plantation are mostly farm lands and forest lands. Productivity in degraded land is low and as a result developers can hardly be sustained May 2010 VlII in such situations. The major reason for Sun bio-fuel to leave the plantation site in Offa is that the land is not suitable for Jatropha. This situation leads the developers to use farm lands which get biannual rainfall. Likewise, many out-growers use their crop lands for the production of Jatropha hoping that they will get better income. As a resu lt the price of food crops is increasing because the supply of food crops decreased due to the introduction of Jatropha plantation. The inappropriate use of fertilizers and pesticides are also affecting the fertility of the land though it needs further research. On the other hand, Jatropha plantation has big job opportunities for those farmers who do not have enough farmlands. Given all the uncertainties in the benefits and consequences of bio fuel development, large scale development is likely to cause harmful impacts if adequate monitoring methods are not put in placeenLivelihoods of Local CommunityOpportunities and Challenges of Jatropha Development on the Livelihoods of Local Community in Ethiopia. The Case of off A WoredaThesis