Aim of the Project
Caribbean countries are largely dependent on fossil fuels to supply most of their energy needs. In Jamaica fossil fuel imports account for 28 percent of merchandise imports, and for 27 percent in both Guyana and Cuba. One of the main consumers of energy imports in the region is the transport industry.
Having regard to this, a study – “Greening Vehicular Transport in the Caribbean” – was commissioned by an international donor organisation. The main goal of this project was to conduct a cost-benefit analysis to assess whether the electrification of transport in a small island economy – Barbados – could reduce dependence on fossil fuels, boost economic growth and enhance sustainability.
Antilles Economics was engaged by the organisation to conduct the study and present the results at a regional workshop involving policymakers.
What We Did
This project required a number of research approaches. First, stakeholder interviews were conducted with individuals in transport, finance, and electricity generation and distribution. Second, a survey of consumers was conducted to assess their willingness to use and pay for electric vehicles as well as their general opinions and views on greening transport. Finally, the primary data collected was combined with secondary data to provide an assessment of the potential impact of greening transportation on foreign exchange reserves, business investment, the environment, fiscal balances and economic growth.
The study found that greening the transport industry could hold a number of macroeconomic and environmental benefits, such as having a national store of renewable energy. The paper also reported that there is demand for electric vehicles but the current incentive structure is somewhat perverse.
Impact of Project
The results from the project were presented to a regional group of stakeholders and policymakers interested in transportation. Since the dissemination of the report more countries in the Caribbean have begun the electrification of their transport industry, particularly in the OECS. In addition, many of these countries have reformed their tax and duty structure to make electric vehicles more economically feasible.