Green energy transitions and the temptation of natural resource rents: Experiences from Ecuador

Abstract

ABSTRACT In the last two decades, the Ecuadorian state, under the presidencies of left-wing Rafael Correa and his successor Lenín Moreno, has pursued a clearly marked development strategy based on the extraction and export of raw materials, especially oil. In Ecuador’s natural resource-driven development model, the appropriation and distribution of natural resource rents play a significant role. These rents render economic, institutional, and political reforms and development projects possible. However, the dependence of large strata of the Ecuadorian population on these rents presents hurdles for sustainable development in general and a green energy transition in particular. The article explores these challenges, emphasising the economic and political conditions defined by a rent-based logic. Although governments in Ecuador have started to acknowledge the role of green mining in the energy sector, a wholehearted energy transition or a push toward sustainable development might fail because of the formative power of rent.