Fiscal incentives promoting REEE measures in Trinidad and Tobago

Pages196-213
Date29 July 2014
DOIhttps://doi.org/10.1108/WJSTSD-06-2014-0013
Publication Date29 July 2014
AuthorZaffar Khan,Kathryn Siriram,Kyren Greigg
SubjectPublic policy & environmental management,Environmental technology & innovation
Fiscal incentives promoting REEE
measures in Trinidad and Tobago
Zaffar Khan, Kathryn Siriram and Kyren Greigg
Arthur Lok Jack Graduate School of Business, University of the West Indies,
Port of Spain, Trinidad and Tobago
Abstract
Purpose – Dependence on foreign energy supplies have resulted in some islands successfully harnessing
alternative and renewable energy (RE) sources in order to provide a small degree of self-sufficiency.
However, the development of Trinidad and Tobago’s (T&T’s) RE industry has stagnated largely due
to the existence of substantial energy subsidies, which present cheap fuel and electricity prices th us
providing a disincentive to RE investment. The purpose of this paper is to seek t o re-enforce the necessity
for an indissoluble government intervention in the establishment of well-designed, coordinated and
innovative public-private partnerships for a successful RE industr y in T&T.
Design/methodology/approach – This paper is based on a review of relevant social and economic
literary sources; the research topic has been meticulously investigated.
Findings – Initial outcomes indicate that the principal facilitators of RE proliferation in the
Caribbean, and more so T&T, will require: gradual reduction of the energy subsidy; declining project
costs via fiscal incentives and grant financing; expectation of beneficial rates of return on investment
through the guarantee of optimal prices for renewable electricity or the revenue gained from the sale of
carbon credits; and capacity building, institutional strengthening and implementation of appropriate
legislative and regulatory instruments which provide open access to the national grid.
Research limitations/implications – With the exception of T&T, Caribbean nations are heavily
dependenton oil and gas importsto meet their primaryenergy requirements. The investigationconducted
has limited documentation on cases of a similar nature within the region. The outcome of the steps
identified above are based on conjecture using information gained from international situations.
Practical implications – The study helps clarify the crucial role of T&T’s government in the
successful development of the RE industry. Resources and earnings should be used to develop T&T’s
infant RE industry and hence reduce the carbon footprint of the nation.
Originality/value – Past attempts by the government to promote RE an energy efficiency in T&T
have been passive and prevaricated. In addition to outlining the existing fiscal initiatives available
to the population, this paper provides short-, medium- and long-term recommendations for the
sustainability of RE in T&T.While subsidy refor m, amongothers, p oses a challenge it is nonetheless
imperative if T&T is to move forward. With the abundance of solar, wind and waste-to-energy
resources there is great potential for a successful RE industry in T&T. More than just policy will be
required to drive change; greater commitment by the government to ensure the sustainability and
economic viability of T&Twhile also attempting to alter the mindset of the citizenry to act as effective
stewards of the island’s resources for the well-being of future generations.
Keywords Sustainability, Sustainable development, Incentives, Renewable energy, Investment,
Subsidy, Development policies
Paper type Case study
1. Introduction
This paper will attempt to provide a review of the social and economic measures
which affect the feasibility of renewable energy (RE) utilization in Trinidad and Tobago
(T&T) and fiscal incentives which have been and should be implemented to promote
greater sustainable energy development.
To this date, many global economies are still in recovery mode stemming from the
Global Financial Crisis while facing ascending oil prices and all time high records of
greenhouse gas (GHG) emissions. In essence, if the current modes of energy demand
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/2042-5945.htm
WorldJour nal of Science, Technology
and Sustainable Development
Vol. 11 No. 3, 2014
pp. 196-213
rEmeraldGroup Publishing Limited
2042-5945
DOI 10.1108/W JSTSD-06-2014-0013
196
WJSTSD
11,3
and supply from fossil fuels are left unhindered there will be a continued threat to
global energy security, economic development, health and environment, all of which
are greatly unsustainable for present and future generations.
Studies on world energy consumption up to the year 2040 indicate that oil and gas
will account for a 60 per cent share of global energy demand as shown in Figure 1.
Fortunately, other studies with projections as far as the year 2100 all produced similar
forecasts – world energy supply will be dominated by RE sources as in Figure 2.
250
200
150
100
50
0
Oil
Gas
Coal
Nuclear
Blomass/
Other
Wind/Solar/
Blofuels
Hydro/Geo
Global energy demand by fuel type
Quadrillion BTUs
From its peak in 2025, coal
will decline by more than
10 per cent by 2040.
Latin America and
China are the biggest
users of hydro power,
which makes up over
80 per cent of total
Hydro/Geo supplies
2010
2040
Source: ExxonMobil (2012)
Figure 1.
Forecast of world primary
energy demand by fuel
type by 2040
2006 2030
20,000
15,000
10,000
5,000
20,000
15,000
10,000
5,000
Total primary energy supply in [Mtoe]
Legend
Geothermal
Hydro
Wind
Biomass
Solar collectors
SOT
PV
Uranium
Coal
Gas
Oil
Geothermal
WEO 2006
Hydropower
Uranium
Coal
Gas
Oil
Wind power
Biomass
Solar
collectors
PV
1930 1950 1970 1990 2010 2030 2050 2070 2090
SOT
Source: Zerta et al. (2008)
Figure 2.
Forecast of world primary
energy supply by 2100
197
REEE measures
in T&T

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT