The economic literature of ‘investment under uncertainty’ has been used in many different contexts: investment of manufacturing firms, in financial instruments, etc. But perhaps the best application of the theoretical model is related to oil and gas investment. A recent paper, IDB-WP-661, brings these lessons to Trinidad and Tobago, discussing the dos and don’ts of taxation … [Read more...] about The Thin Blue Line of a Long Horizon: How much should Trinidad and Tobago Tax Policies Encourage Oil and Gas Investment?
Antigua and Barbuda: Energy Market Overview Antigua and Barbuda is a two-island state located in the Eastern Caribbean, home to a population of 82,000 people. It is the wealthiest of the Eastern Caribbean states and also has the highest per capita consumption of electricity. The national economy is dominated by the tourism industry which accounts for more than half of the GDP, … [Read more...] about Antigua and Barbuda’s Energy Market
Trinidad and Tobago: Energy Market Overview Trinidad and Tobago are the southernmost of the Caribbean islands and are located just seven miles off Venezuela’s north-eastern coast. It is home to a population of 1.32 million people. Trinidad and Tobago’s economy is highly dependent on the energy sector which accounts for 45.3 percent of national GDP (2011), provides 57.5 percent … [Read more...] about Trinidad and Tobago’s Energy Market
Dominican Republic – Energy Matrix & Regulatory Framework With a gross domestic product (measured at PPP) of USD 90 billion and a population of 10.3 million people, the Dominican Republic is the largest economy in the Caribbean and has the largest population after Cuba. Its energy matrix is dominated by the import of fossil fuels as primary sources (crude oil, natural gas … [Read more...] about Dominican Republic’s Energy Market
by Christopher Barton, Lumas Kendrick, and Malte Humpert The high and volatile price of electricity is the most important issue in the energy sector. Electricity prices in the Caribbean are among the highest in the world, and they fluctuate greatly with the global price of oil. The primary cause of the high cost of electricity is that most Caribbean countries use diesel and … [Read more...] about The Caribbean has some of the world’s highest energy costs – now is the time to transform the region’s energy market