Energy and Environmental Security—Latin America’s Balancing Challenge

Abstract

Energy is imperative for accelerating economic development and improving lives by raising living standards. However, accelerating fossil fuel extraction or increasing imports to boost rapid industrial activities or accelerate economic development do not provide the desired socioeconomic benefits. On the contrary, some of the economic gains are offset by environmental damage. The counterbalancing concepts of energy security and environmental security have relative meanings that vary based on the national resource- and economic-context in which it is discussed. The countries in Latin American have distinct advancements and advantages which vary across the region, including almost universal access to electricity, a high proportion of which is generated renewably. On the other hand, extensive inequality, marginalization, corruption, and regional conflict are limiting the extent to which living standards are raised for the burgeoning population. The drive to generate public revenues by participating in international energy markets may be causing Latin American countries to deplete their hydrocarbon reserves too rapidly, which threatens both environmental and energy security. Indeed, even if a complete shift to renewable energy were possible in the near future, though it would improve environmental security, it would not guarantee energy security, which is a significant concern to Latin American governments. There are several possible risk mitigation strategies through which a country (either importing or exporting) can secure energy supply and promote measures to protect the local environment. However, there are many risks opposing effective implementation in Latin America. Heavy fuel subsidies tend to increase domestic demand, increase consumption of local fuel, more rapidly deplete domestic reserves, and ultimately reduce fuel export revenues. Failing the balancing act of resource nationalism vs. energy security, this is the paradox in which Latin America finds itself. Latin American countries face several particular challenges in driving sustainable economic development. This chapter documents the energy and environmental security challenges faced by Latin America.KeywordsEnergy securityEnvironmental securityResource nationalismEnergy accessFuel subsidizationResource curseDecarbonization