The rapid growth of worldwide energy demands has led to mounting concerns about energy shortages and has promoted the development of biofuels, which are susceptible to climate change. To evaluate the effects of future environmental changes such as CO₂ enrichment and water stress on the growth and biodiesel production of bioenergy plants, we exposed Jatropha curcas to two levels of CO₂ concentration (ambient and elevated) and three watering regimes (well-watered, moderate drought, and severe drought) to study its biomass accumulation and allocation, energy cost-gain properties, and photosynthetic response. Elevated CO₂ enhanced biomass accumulation of J. curcas by 31.5, 25.9, and 14.4 % under well-watered, moderate drought, and severe drought treatments, respectively, indicating that the stimulating effect was greater under optimum water conditions than in water-deficit conditions. Drought stress significantly increased the biomass allocation to roots, especially the fine roots. CO₂ enrichment also increased the root mass fraction, though not significantly. CO₂ enrichment significantly enhanced the photosynthetic rate measured under growth CO₂ concentration (A _growth) and decreased foliar N content and therefore construction cost irrespective of watering conditions. Under elevated CO₂, J. curcas employed a quicker return energy use strategy indicated by the higher photosynthetic energy use efficiency and lower payback time. There was a pronounced downregulation in the light-saturated photosynthetic rate under the common CO₂ concentration (P _max) under long-term CO₂ exposure, due to a decrease in the initial and total ribulose-1,5-bisphosphate carboxylase/oxygenase (Rubisco) activities and partially lower foliar N content. The significant interaction of CO₂ enrichment and watering regimes implied that the stimulation of plant growth by CO₂ enrichment may be negated by soil drought in the future. Long-term field experiments manipulating multiple factors simultaneously are needed to explore how the ecophysiological traits measured for J. curcas translate into bioenergy production.