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Potential of Solar Energy in Agricultural Production in Caribbean Countries

Serhat Asci (), Srini Konduru and Lynn Williams

Farm and Business - The Journal of the Caribbean Agro-Economic Society, 2020, vol. 12, issue 1

Abstract: The energy sector in Caribbean countries faces many challenges due to its high dependence upon non-renewable energy sources and inefficient power generation and distribution infrastructure among many other factors (Timmons, 2017, McIntyre et al., 2016). Though Caribbean countries are endowed with several renewable energy sources like solar, wind, hydro and others, a number of barriers have hindered their adoption as substitutes for expensive fossil fuel-based energy sector. Several studies have concluded that these barriers will harm the economic development and environmental sustainability of the Caribbean countries. In this background, agricultural development is also subjected to the same challenges as it is dependent upon the expensive fossil fuel-based energy sources. This study analyses the potential of renewal energy sources, especially solar power for the agricultural sector. In this study, we have analyzed the impact of a Solar Powered Irrigation System (SPIS) on the profitability of a tomato crop enterprise in Trinidad and Tobago. This study utilizes a comprehensive investment decision model that implements Monte Carlo simulation approach to look at the decision to invest in SPIS. The results show that a risk neutral producer prefers SPIS as a preferred alternative, whereas a risk-averse producer prefers traditional diesel power irrigation system over SPIS.

Keywords: Agribusiness; Crop Production/Industries; Resource /Energy Economics and Policy (search for similar items in EconPapers)
Date: 2020
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DOI: 10.22004/ag.econ.307709

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