Solid fuel consumption for cooking is to account for 62 percent in Pakistan. According to the world bank, indoor pollution accounts for 40 million cases of acute respiratory infections and 28 000 deaths/year in Pakistan. main objectives of the study were, A) To evaluate the cooking fuel impact on female health. B) To estimate the heath cost of cooking fuel sources. C) To investigate the economic feasibility and environmental benefits of the biogas plant. The study was based on primary data, collected through a well-developed questionnaire consisting of 282 sample size. The empirical analysis was examined through the t-test, Poisson regression model, Durbin-Wu-Hausman test, ordinary least square method, and cost-benefit analysis. The result indicated that total time spends in the kitchen to females, the number of windows in the kitchen, polluted cooking sources, and education have a significant impact on the frequency of diseases among females working in the kitchen. The coefficient of the predicted value of the total number of diseases, kitchen location, kitchen size, and the number of windows in the kitchen are significantly affecting the health cost of the working female. Biogas technology can serve as a means to overcome energy poverty. Biogas contributes to improving the environment and economic benefits that subsequently impacting positively on income. The benefit-cost ratio of small size biogas plant (6 m3) is 1.1. The internal rate of return from the small size biogas plant is 34 percent. All sizes of biogas plants recover the cost in 5th year after the plant installation. So, we can suggest that biogas can be the best substitute for solid fuel. The government should invest in this sector by the public and private partnership. Supervisor:- Dr. Abedullah