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Energy justice and the contested petroleum politics of stranded assets: Policy insights from the Yasuní-ITT Initiative in Ecuador

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  • Sovacool, Benjamin K.
  • Scarpaci, Joseph
Abstract
Ecuador's progressive Yasuní-ITT Initiative, operational 2007 to 2013, would have left almost one billion barrels of crude oil locked in perpetuity beneath one of the most intact and diverse nature reserves on the planet. The project attempted to “strand” these oil assets in order to protect biodiversity, respect the territory of indigenous peoples, combat climate change, and encourage more sustainable economic development. The Yasuní-ITT proposal would have had the international community pay Ecuador $3.6 billion—roughly half the value of the oil found there—in exchange for not developing the Ishpingo Tambococha Tiputini (ITT) oilfields. Funds would have been placed into social and environmental development programs and the promotion of domestic renewable energy. Instead, the project collected only $13 million and succumbed to a series of challenges including limited financing, intense political pressure, a national commitment to oil, and carbon leakage. This article summarizes the history, benefits, and insurmountable obstacles facing the Yasuní-ITT Initiative and presents six broader lessons and implications for climate and energy analysts, practitioners, and policymakers. It questions the political viability of and serves as a stark warning against those promoting and advocating policies centered on carbon budgets, stranded assets, negative emissions, and carbon revenue streams.

Suggested Citation

  • Sovacool, Benjamin K. & Scarpaci, Joseph, 2016. "Energy justice and the contested petroleum politics of stranded assets: Policy insights from the Yasuní-ITT Initiative in Ecuador," Energy Policy, Elsevier, vol. 95(C), pages 158-171.
    • Handle: RePEc:eee:enepol:v:95:y:2016:i:c:p:158-171
    DOI: 10.1016/j.enpol.2016.04.045
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    References listed on IDEAS

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    4. Shimbar, A., 2021. "Environment-related stranded assets: An agenda for research into value destruction within carbon-intensive sectors in response to environmental concerns," Renewable and Sustainable Energy Reviews, Elsevier, vol. 144(C).
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    6. Villalba-Eguiluz, C. Unai & Etxano, Iker, 2017. "Buen Vivir vs Development (II): The Limits of (Neo-)Extractivism," Ecological Economics, Elsevier, vol. 138(C), pages 1-11.
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    8. Francesco Facchinelli & Salvatore Eugenio Pappalardo & Daniele Codato & Alberto Diantini & Giuseppe Della Fera & Edoardo Crescini & Massimo De Marchi, 2019. "Unburnable and Unleakable Carbon in Western Amazon: Using VIIRS Nightfire Data to Map Gas Flaring and Policy Compliance in the Yasuní Biosphere Reserve," Sustainability, MDPI, vol. 12(1), pages 1-26, December.
    9. Forman, Alister, 2017. "Energy justice at the end of the wire: Enacting community energy and equity in Wales," Energy Policy, Elsevier, vol. 107(C), pages 649-657.
    10. Ansari, Dawud & Holz, Franziska, 2020. "Between stranded assets and green transformation: Fossil-fuel-producing developing countries towards 2055," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 130, pages 1-1.
    11. Sovacool, Benjamin K. & Burke, Matthew & Baker, Lucy & Kotikalapudi, Chaitanya Kumar & Wlokas, Holle, 2017. "New frontiers and conceptual frameworks for energy justice," Energy Policy, Elsevier, vol. 105(C), pages 677-691.
    12. David Milesi-Gaches, 2020. "Assessing implications of different energy sources: Quito, Ecuador [Évaluation des implications de différentes sources d'énergie : Quito, Équateur]," Working Papers hal-03555312, HAL.
    13. Jenkins, Kirsten & Sovacool, Benjamin K. & McCauley, Darren, 2018. "Humanizing sociotechnical transitions through energy justice: An ethical framework for global transformative change," Energy Policy, Elsevier, vol. 117(C), pages 66-74.
    14. Lucas Bretschger & Karen Pittel, 2019. "Twenty Key Questions in Environmental and Resource Economics," CER-ETH Economics working paper series 19/328, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
    15. de Wildt, Tristan E. & Chappin, Emile J.L. & van de Kaa, Geerten & Herder, Paulien M., 2018. "A comprehensive approach to reviewing latent topics addressed by literature across multiple disciplines," Applied Energy, Elsevier, vol. 228(C), pages 2111-2128.
    16. Shengqing Xu & Tao Wang, 2017. "On energy equity and China’s policy choices," Energy & Environment, , vol. 28(3), pages 288-301, May.
    17. Icaza, Daniel & Borge-Diez, David & Galindo, Santiago Pulla, 2022. "Analysis and proposal of energy planning and renewable energy plans in South America: Case study of Ecuador," Renewable Energy, Elsevier, vol. 182(C), pages 314-342.
    18. Wei, Yu & Zhang, Jiahao & Bai, Lan & Wang, Yizhi, 2023. "Connectedness among El Niño-Southern Oscillation, carbon emission allowance, crude oil and renewable energy stock markets: Time- and frequency-domain evidence based on TVP-VAR model," Renewable Energy, Elsevier, vol. 202(C), pages 289-309.
    19. Icaza-Alvarez, Daniel & Jurado, Francisco & Tostado-Véliz, Marcos & Arevalo, Paúl, 2022. "Decarbonization of the Galapagos Islands. Proposal to transform the energy system into 100% renewable by 2050," Renewable Energy, Elsevier, vol. 189(C), pages 199-220.
    20. Healy, Noel & Barry, John, 2017. "Politicizing energy justice and energy system transitions: Fossil fuel divestment and a “just transition”," Energy Policy, Elsevier, vol. 108(C), pages 451-459.

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