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Abstract
The Kyoto Protocol has initiated Clean Development Mechanism projects in developing countries as one means to offset carbon emitted in developed nations. Biofuels may be a viable solution, but we argue here that it may also compete with local smallholder farming systems and labour resources. This study assesses the integration of tree bio-diesel crop Jatropha curcas into smallholder agriculture in Tamil Nadu, India using data collected from 66 farms through surveys and interviews. Jatropha cultivation carries significant risks for the smallholders. Jatropha competes for space and harvest labour with other market and subsistence crops and does not produce any economic returns until three years after planting. If the jatropha harvests or market price fail or fluctuate, smallholders could default on their loans. This risk could lead to significant changes in the land-holding class structure. Climate change policies, non-governmental organizationss, and national and regional governments should support landholders to sustainably integrate a new crop like jatropha into current holdings, otherwise the current alternative energy revolution could create more problems than it solves. Smallholders are particularly vulnerable to economic risk and crop failure exposure even with well-planned biofuel policies.
Acknowledgements
The lead author was associated with a biofuel crop company during fieldwork in the fall of 2007. Data interpretations by the authors have not been influenced by this past relationship. The authors would like to thank the constructive criticism from two anonymous reviewers for Climate and Development, which strengthened the final version of our manuscript.