Energy consumption and projected growth in selected Caribbean countries

Abstract

This paper examines two issues that are central to the understanding of the need to increase efficiency in the use, distribution, and production of energy in the Caribbean region. The empirical results of this Paper suggest the following: first, the three Caribbean countries provide evidence of short-run bi-directional Granger-causality from energy consumption to real gross domestic product per capita. Second, the forecasts with A BVAR model indicate that significant growth in energy demand could be expected in Haiti, Jamaica, and Trinidad and Tobago until at least 2010. Third, the increased growth in energy consumption suggests the need for long-term commitments from Caribbean countries to undertake a series of policy, economic, market, and research and development measures to advance the adoption and deployment of new energy technologies.