ABSTRACT
A successful energy transition is more necessary because the current system is unsustainable. While both the Central American and Caribbean countries, with the notable exception of Trinidad and Tobago, are net importers of energy, significant differences exist. The transportation sector is also almost exclusively dependent on oil, leaving the region suffering from energy prices that are not only high but also extremely volatile. The decline was the greatest in the area of energy equity, suggesting a policy shift towards energy security. A related World Bank measure, government effectiveness, also has great relevance for implementing successful strategies in the renewable energy area. The patterns noted above illustrate the difficulty of drawing broad conclusions over the energy situation in the region as a whole, or even for the Caribbean or Central America separately. In contrast to regulatory quality government effectiveness does not show great differences between the Caribbean countries and those in Central America.
