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Between Oil Dependence and Energy Sovereignty: The Limits of the Energy Transition in Ecuador

Abstract:

During the period 2007–2017, the government of Ecuador set out to reduce the dependence on oil revenues that has characterized its economy since the 1970s. Within the framework of the global energy transformation and the commodity boom, a series of public policies were designed and implemented to change the energy matrix, in conjunction with the change in the productive matrix, which included the construction of large hydroelectric projects and the proposal to leave the oil reserves of the Yasuní National Park underground. This process, which resulted in a reduction in electricity costs and a surplus supply of electricity that would guarantee energy sovereignty, has been less successful in causing changes in the demand for fossil fuels that sustain the production and consumption structure of the country. The aim of this research is to make a critical assessment of the results of the energy transition policies in Ecuador and will identify the limits and structural contradictions that the development model, dependent on oil revenues, impose on the processes of energy transformation and production. The aim is also to carry out an analysis of the links between oil revenues and the system of energy subsidies (fuels) aimed at the transport sector, household consumption and productive activities that require oil revenues to sustain themselves.