Dependence on firewood as a major source of energy for cooking and heating results in deforestation and tehsil Ishkoman, in this regard is no exception. The present study aims to investigate, how provision of electricity1 as an alternative to firewood will impact deforestation with reference to the study area. Primary survey data of 250 households was carried out in this regard. The methodology used in this study is Descriptive statistics, Cost and Benefit analysis and Contingent valuation to capture willingness to pay. The results show that almost 100 percent of the respondents are using firewood as a major source of energy for heating and cooking purposes due to unavailability of other sources of energy. On average each household consumes 11.68 tons2 of firewood per year. Each household spends four and half hours for a single firewood collection trip and majority of the households collect firewood twice per week. More than 85 percent of the respondents are willing to replace existing energy source with alternative source (electricity) and their maximum willingness to pay (MWTP) is more than four times as compared to their existing electricity bills. Provision of electricity as an alternative energy source will not only reduce deforestation but also help in poverty reduction in the study area. On the basis of these results government should devise policies for such areas. Supervisor:- Dr. Rehana Siddiqui