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The phrase "which could otherwise" is correct and usable in written English.
You can use it to suggest that something has the potential for a different result or outcome than what is currently happening. For example, "The city was working on new safety guidelines for public areas, which could otherwise lead to increased levels of security."
Exact(60)
But like ethanol, producing biodiesel requires farmland, which could otherwise be used to raise food.
That means there is a significant spillover by these vehicles into metered and unmetered spots, which could otherwise be used by the public.
Subsidies also distort world market prices for vegetables, cut flowers and cereal grains, many of which could otherwise be marketed competitively by third world countries.
Most of the crop's nutritional content (which could otherwise have gone to feed humans) is thereby effectively converted into faeces, inedible tissue and heat.
The carrier says it charges so much in such circumstances to thwart screen-scraping software, which could otherwise book tickets under false names and then sell them on.
"The resulting cost to borrowers can be thousands of dollars in taxes which could otherwise be easily avoided," Mr. Wasser said.
Piling up reserves for this purpose has been a costly business for developing nations, which could otherwise invest those funds in their own economies – and earn a much higher rate of return.
Later, when times got hard, during droughts or climate changes, it helped us deal with these crises, which could otherwise have killed us off, by dreaming up novel ideas to problems.
So it's worth noting that anabolic steroids not only helped Canseco turn into a home-run-hitting monster but also, he says, allowed him to recuperate from a series of back surgeries which could otherwise have ended his career.
Leonard Koren, who writes books about design and aesthetics, said that for a relationship to thrive in close quarters, the couple must acquiesce to the constraints of the space, which could otherwise grind them down.
This approach could potentially lead to unnecessary travel cost which could otherwise have been avoided.
More suggestions(15)
which could normally
which could separately
which could furthermore
which could differently
which could usually
which could alternately
which could also
which could however
which could generally
which could simply
which could instead
which could somehow
which could similarly
which could nonetheless
which could additionally
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com