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Confronting the Energy Security Dilemma of the Caribbean

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Confronting the Energy Security Dilemma of the Caribbean ( confronting-energy-security-dilemma-caribbean )

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ditional 121 million tons of coal, plus 27 million barrels of oil, and 741 Billion cubic feet of natural gas combined. So not only is hydropower environmentally respon- sible, it is economically viable. With the price of fuel at an all time high, hydroelec- tricity can reduce aggregate production costs. It has contributed to poverty reduc- tion and economic growth in developing countries like Sri Lanka and the Congo. Sri Lanka, which is an agriculture based economy like Guyana is benefiting from 70% of hydroelectric power, down from 93% in 1994. The purpose of this paper is to highlight the greater need for exploration of feasible alternative and renewable energy options and the potential for these in the Carib- bean. This is carried out through a study of the energy policies that Caribbean Small Island Developing States (SIDS) have been implementing. Such a comparative analy- sis can only be achieved with somewhat comparable economies, especially those where significant progress has been made in developing and adjusting the economy to alternative and renewable energies. It is vital to consider the need to ensure en- ergy security given the vulnerability and volatility of the global energy economy. This has been demonstrated by the reality of the rapid and drastic fluctuations in the price of petroleum, natural gas and methanol since 2008. Within the parameters of this paper, the focus shall be on general renewable and alternative energy projects and their potential. The study refers to many important related mandates, such as the Kyoto and Montreal Protocols, however the primary focus shall be directed to energy security. As a result of this, the case studies of Ja- maica, Guyana, Barbados, Dominica, St. Kitts and Nevis, Trinidad and Tobago and, for an alternative perspective, Spain shall be used to investigate the progress towards achieving energy security. Endogenous growth, Porter’s national Diamond Endogenous growth is usually referred to as growth from within the system, most often within a nation-state. Knowledge and technology are characterized by increas- ing returns and technological progress is a result of economic activity. In order to be competitive, the emergence of new and progressive ideas must be complemented by economic demand. Moreover, it is essential to be flexible when dealing with global markets of hastening trends and changes. The ability of a country to adjust to changing conditions determines the efficiency and capacity to dominate in terms of market share and in absolute terms. As such, the ability of a country to maintain the pace of progress, and keep ahead of changing international trends, reflects the level of competitiveness in the international global economy: Before a firm can begin to manufacture any variety, it must learn the production technique specific to that variety. If the product is a new one (i.e. not previously available in the marketplace), then this learning represents innovation. If, instead, the product already exists on the market, then the learning represents imitation. In either case, the learning activity requires an expenditure of resources by the en- ENERGY SECURITY OF THE CARIBBEAN 107

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