The study was conducted in Rangpur Sadar, Badarganj and Mithapukur Upazilas of Rangpur district, Bangladesh to assess the economic and environmental benefits of biogas production. 10 biogas plants owned households from these three Upazilas were selected purposively and a structured questionnaire survey was conducted for data generation. Biogas production was calculated using the ADB developed conversion table and CO2 emission was calculated using the Climate Registry data sheet. Average biogas production rate found as 0.0251 m3 per 1 Kg of cow dung. Average financial saving from biogas plant was US$ 1 per day/household and the monthly savings as 25 US$/month/household and 300 US$/year/household. Study revealed that the reduction of CO2 emission due to biogas consumption is 9 m3
/household/year. The study indicated that biogas helps to improve socio-economic and environmental conditions of the rural area. It also suggested that biogas production should be linked to the national development initiative setting a biogas production target.