In what ways can renewable energy contribute to growth in Caribbean countries? Documentation style: APA
High oil prices have negatively affected growth in Caribbean economies and with prices constantly rising, the way forward is clear. This is the use of renewable energy instead of oil, which will result in many positive effects on the Caribbean and the world at large. Renewable energy is obtained from natural resources, such as wind, geothermal heats and waves. Unlike oil, renewable energy is not scarce and there is an adequate supply. This therefore means that once the necessary technology is available, renewable energy use would be much cheaper than the use of oil. Renewable energy will result in growth in Caribbean economies since its use will result in reduced expenditure, more stable Balance Of Payments and the creation of new jobs in the Caribbean.
Firstly the use of renewable energy results in Caribbean economies saving a great deal of money. According to the world bank (2012) “a 10% increase in renewable energy potential capacity could lead to a savings of 14.2 million and 5.6 barrels of diesel and heavy fuel oil respectively, representing an average reduction of almost one percent of GDP”. This savings occurs because as the capacity of renewable energy increases, so does renewable energy use. This therefore means that not only will the cost of renewable energy go down because of increased supply, but also the demand for expensive non renewable energy. As a result Savings will therefore increase. Without a doubt, Renewable energy is more affordable than oil. Therefore with cheaper energy available, less money will be lost from the income of Caribbean people due to their need for energy.
Furthermore on the household level savings due to renewable energy is also evident. According to the ministry of energy (2008) “the average household saves around 1,825kwh per year by operating solar water heaters in place of electric heaters. After three...