Identifying Inconsistencies in Long-Run Development Plans: The Case of Barbados' Vision for Energy Development

Abstract

Barbados spends approximately seven percent of annual gross domestic product (GDP) on imported fuel, a significant amount in a foreign exchange constrained economy. In addition to the foreign exchange burden of imported fuel, the relatively high cost of electricity is a major constraint impacting on the external competitiveness of local businesses. This paper uses a model of long-run energy development for Barbados to evaluate whether there are gaps in the medium to long-run vision for energy development in Barbados. It is expected that the study would be able to identify any potential shortfalls in future energy supply under various scenarios of economic development.

Keywords: Energy development, Renewable energy, Sustainable development

JEL Classification: Q4, O54, C6