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dc.titleEnergy Transition in Barbados: Opportunities for Adaptation of Energy Taxes to Mitigate Loss of Government Revenue
dc.contributor.authorMoore, Winston
dc.contributor.authorChueca, J. Enrique
dc.contributor.authorPrado, Veronica R.
dc.contributor.authorCarvalho Metanias Hallack, Michelle
dc.contributor.authorGiles Álvarez, Laura
dc.contributor.orgunitInfrastructure and Energy Sector
dc.coverageBarbados
dc.date.available2022-11-01T00:11:00
dc.date.issue2022-10-01T00:10:00
dc.description.abstractBarbados, through its Barbados National Energy Policy (BNEP) 2019-2030, announced its commitment to achieving 100 percent renewable energy and carbon neutrality by 2030. This commitment creates an opportunity for the GoB to manage the impact of the transition toward renewable clean energy by introducing measures to transform the way revenue from energy is collected thereby avoiding unnecessary fiscal costs. The purpose of this study is to calculate the revenue gap derived from Barbados 2030 energy transition goal of having a revenue-neutral transition and propose and evaluate various policy measures that could help seize opportunities to close that gap. The simulation model suggests that the energy transition would result in an estimated BBD$105 million in revenue losses a year by following the BNEP. Such a reduction would create a significant fiscal gap that would need to be addressed through the introduction of new forms of taxes or changes to current taxes in order to adapt tax collection to revenue creation from the new clean energy economy. A wide range of tax policy options and issues surrounding their effective implementation were discussed such as: increased taxes on fossil fuels, a change in the VAT rate, mileage taxes on electric and hybrid vehicles, and taxes on renewable energy production. Each of these new tax approaches can help address the fiscal gap estimated above
dc.format.extent56
dc.identifier.doihttp://dx.doi.org/10.18235/0004534
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Energy-Transition-in-Barbados-Opportunities-for-Adaptation-of-Energy-Taxes-to-Mitigate-Loss-of-Government-Revenue.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectTaxation
dc.subjectEnergy Planning
dc.subjectDecarbonization
dc.subjectEnergy
dc.subjectFiscal Burden
dc.subjectEnergy Transition
dc.subjectEnvironmental Tax
dc.subjectRenewable Energy
dc.subjectValue-Added Tax
dc.subjectFiscal Policy
dc.subjectTax Revenue
dc.subjectFossil Fuel
dc.subjectElectricity
dc.subject.jelcodeC80 - Data Collection and Data Estimation Methodology • Computer Programs: General
dc.subject.jelcodeE01 - Measurement and Data on National Income and Product Accounts and Wealth • Environmental Accounts
dc.subject.jelcodeE69 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: Other
dc.subject.jelcodeH20 - Taxation, Subsidies, and Revenue: General
dc.subject.jelcodeO54 - Latin America • Caribbean
dc.subject.keywordsBarbados;Energy Transition;decarbonization;electromobility;Fiscal Impact
dc.typeTechnical Notes
idb.identifier.pubnumberIDB-TN-02532
idb.operationBA-T1065
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