Energy Transition in South America: Elite'S Views in The Mining Sector, Four Cases Under Study
Energy Transition in South America: Elite'S Views in The Mining Sector, Four Cases Under Study
Energy Transition in South America: Elite'S Views in The Mining Sector, Four Cases Under Study
1. Introduction
In South America, most countries face significant energy challenges due to increased
demand, deficits in infrastructure and energy policies, increased CO2 emissions, urban
pollution, poverty, and increased socio-environmental conflicts (Larraín and Aedo 2008,
Walter and Martinez-Alier 2010, OLADE-UNASUR 2012). There have been efforts to
advance energy efficiency and sustainable patterns of energy consumption, but these as
yet have had insufficient results (Vergara et al. 201, ECLAC, 2015).
The number of publications on sustainability transition studies has grown fast in the
last decade (Geels 2013), especially in developed, Northern and Anglo-Saxon countries.
Many of these studies have focused on critical problems of energy transition (Smith 2012,
Verbong and Loorbach 2012), mostly from the science, technology and society perspec-
tives and in the engineering fields, with a system-based approach. Here we emphasise a
sociological perspective for developing countries in South America.
In the context of this transitional perspective, we address the following questions: are
South American elites’ social representations favourable to energy transition and energy-
sustainable industrial consumption in the extractive sector? How is the narrative production
of meaning affecting these favourable opinions? Our study is focused on four countries:
Argentina, Chile, Colombia and Ecuador. It is understood here that sustainable energy
consumption in large-scale mining refers to energy consumption in all phases of the mining
cycle, and involves achieving energy efficiency and energy consumption with lower carbon
emissions. Energy transition is focused on the introduction of renewable energies (RE).
The world is advancing, in a paradigm shift, towards clean industrial production
and concomitant sustainable and equitable energy consumption. The extent to which
elites of developing countries are aware of this necessary paradigm shift is a key issue of
environmental governance, which involves private and government actors. ‘Storylines
codifying visions and expectations are important for the enrolment of different actors
into coalitions for change’ (Smith, et al. 2005, p. 1507).
1. Acknowledgment: This paper is an output of the ENGOV Project FP7 266710 and the FONDECYT PROJECT No
1150607. We appreciate the support of the Fund for Science and Technology of Chile.
2. Ph.D. in Sociology, Full Professor, Institute for Advanced Studies, University of Santiago de Chile. E-mail: cristian.
parker@usach.cl
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In other words the way in which discourses are created and rhetoric is used in the
‘sustainable energy consumption in the mining industry’ narrative affects the priorities
given to energy efficiency, and especially to non-conventional renewable energies ([NCRE]
sources: solar, wind and geothermal). These linguistic and semantic variations are mainly
due to the socio-structural positions of the major participants in the discourse, in this
case the respective members of the elite concerned. The national variable will not be
influential given a narrative structure that crosses national borders.
Here, we analyze social representations of energy consumption in the large-scale
extractive sector, based on an analysis of the discourse advanced by social agent members
of elites in four South American countries. We have chosen Argentina, Chile, Colombia
and Ecuador because, as said, their mining and energy sectors have become increasingly
challenging since investment is growing considerably, and they are being resisted by local
communities for socio-environmental reasons.
In comparative terms we have chosen two pairs of countries that occupy oppos-
ing positions with regard to the energy sector and mining development. This is because
our information is based on small-N samples; therefore we have to stress comparative
similar/different criteria. On the one side are Argentina and Chile, on the other Colom-
bia and Ecuador. From the point of view of the energy matrix Argentina (71.3%) and
Chile (62.5%) depend heavily on fossil fuels to feed their thermoelectric power plants.
Argentina is the only one of the four countries that has nuclear power plants (4.6%) and
Chile has an important contribution of biomass (9%). In contrast, Colombia (79.6%)
and Ecuador (58%) rely mostly on hydropower (Observ’ER and Fondation Energies for
Le Monde 2016).
However, in all of the countries studied, NCRE are marginal in their global energy
matrix (OLADE-UNASUR 2012). The percentages of wind power in total energy pro-
vision in the four countries were: Chile, 0.5%; Argentina, 0.2%; Colombia, 0.1%; and
Ecuador, nil. The percentages of solar power were: Argentina 0.01% and Chile, 0.009%;
and nil for Colombia and Ecuador. No geothermal plants are mentioned. Nevertheless
all four countries have high potential for NCRE (Vergara et al. 2013, Newell 2014).
In the mining sector there is a gradient in the countries’ evolutions and relative
weight: Chile has most mining of the four: in 2014 the mining contributed 11.2% of gross
domestic product (GDP); mining exports represented 60.7% of all exports. In 2014 the
mining sector contributed 2.4% of Colombian GDP, although its importance is growing;
1.3% of Ecuador’s GDP; and 1.1% of Argentina’s GDP. Nevertheless, in terms of develop-
ment, the Argentinian mining sector, after Chile’s, has a longer history and weighs more
in the commercial balance, contributing 6.4% of the country’s exports.
The energy policies in these countries are diverse. The main official measures
address strategic goals led by the requirement to increase electric power for devel-
opment needs, and to ensure energy security and autonomy. The goal of reducing
carbon emissions has been secondary, although recently there have been new efforts
to promote RE.
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countries; the Chilean experience stands out, although it is only beginning to introduce
alternative energy sources in large-scale mining.
4. Methodology
Male 48 22 20
Female 17 4 8
N 65 26 28
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With the aid of a panel of experts in each country, we chose elite members from
a very select list of names of representatives of groups at a national level with extensive
influence on business, politics, government bureaucracy, and civic environmental organ-
isations. All of the members were involved, directly or indirectly, in paradigmatic cases
of large-scale mining and some with energy corporations. The list consisted of business
people, chief executive officers (CEOs) or high executives, high officials from the mining
or environmental ministries, members of parliament (of mining, energy or environment
commissions), experts (mostly consultants) involved with the cases, and national envi-
ronmental leaders.
For triangulation reasons, we used a double instrument method. Following a face-
to-face semi-structured consented interview (Harvey 2011), interviewees had to answer
a structured closed questionnaire.
We subjected the discourses objectified in texts to semantic discourse analysis
focused on the semiotic square (Barthes 1966, Greimas 1976). We decoded the texts
following the analytical linguistic and semantic procedure based on syntagmatic (gram-
mar) and paradigmatic (conceptual network) structures. This involved reconstructing the
main semantic structure of the texts and building on the models of social representations.
5. Main Findings
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The variations between the samples are relatively slight. Their implicit logic validates our
handling of the main sample in the context of conducting small N methods.
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Taking Argentina first, Table 2 indicates a preference mainly for solar and wind,
probably because the Pampas and Patagonia are vast resources of wind and solar energy.
Nuclear is mentioned as well, probably because Argentina is the only country studied
that already has nuclear energy. In Chile, preferences are for solar, hydro, geothermal
and wind. Chile, with a great solar resource, the Atacama Desert, and plenty of water
and geothermal resources in the Andes, also possesses large wind resources in the central
valleys. The Chilean energy matrix already has an important percentage of biomass.
Colombian respondents prefer solar, wind, tidal, and hydro. Colombia currently makes
extensive use of hydropower from the vast basins of the Colombian Andes. Already
central to the country’s electricity mix it is supposed to grow because of its great po-
tential to replace fossil sources. Research to identify the energy potential of the sea has
been developed in recent years. In Ecuador, interviewees prefer hydro, solar, wind and
geothermal. Ecuador currently has abundant hydropower resources and a government
that aims to increase their use. Similarly, geothermal resources exist in the Andes, as
well as solar and wind.
Having analysed preferences, we now move to assessing energy source feasibility
where there are significant differences between interviewees.
For Argentina, there are abundant hydro (83%) resources in the Andes, with solar
(75%) and wind (72%) in the Pampas, and abundant gas reserves (67%); nuclear energy
is mentioned because there are three reactors currently operating.
In the Colombian case, hydro (89%) is frequently cited as feasible because Colombia
has abundant water resources; gas (62%) and coal (62%) are cited because Colombia has
large reserves and coal mines which are important in the world market.
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Ecuadorean sources cite hydro feasibility (100%) because the country has abundant
hydro sources and energy policies that prioritise them, and solar (93%) and wind (60%)
because there is significant potential to harvest them.
For Chile, in this main sample the energies privileged as feasible are: hydro (62%),
coal (62%), and oil (58%). This might be an expression of the particular energy and
mining situation of the country: the country needs a great amount of energy for mining
and does not have any hydrocarbon reserves, coal for thermo plants being the best priced
energy alternative.
All these choices reveal the influence of the national particularities on the dis-
course about the feasibility of energy sources. We can perceive that the country variable
shapes energy preferences and the evaluation of energy feasibility; however, it is not the
main independent variable. In fact another independent variable with more explanatory
capacity is related to the social position of the interviewees. (See Table 3).
Preferable Feasible
NCRE Fossil NCRE Fossil
Business person 70.6 6.0 45.8 55.1
High official 88.9 10.0 45.2 60.0
Politician 85.2 14.8 55.6 24.7
Expert 79.2 4.2 55.4 33.3
Ecologist 80,0 6.7 60.0 20.0
TOTAL 79.2 8.2 50.6 43.3
Source: Research carried out by the author and his team.
ENGOV Project FP7 266710 and Fondecyt Proyect 1150607
We synthesized the data to analyze how main sample respondents answer. The
analysis of the data relating to a large preference for NCRE and views about fossil fuels
indicates that the different socio-institutional positions are influential.
Business persons manifest least preference for NCRE (71% vs the mean 79%)
and in relative terms consider fossil fuels more feasible than renewables (55% vs 43%).
High government officials tend to prefer NCRE a little more (89% vs the mean 79%) but
consider fossil fuels more feasible than renewables (60% vs 45%). Politicians are slightly
more likely to prefer fossil fuels (15%) (mainly gas) and simultaneously tend to consider
these types of fuels less feasible (25%). Experts tend to consider fossil fuels less feasible
(33% vs the mean 43%) and are least likely to prefer them (4%). Ecologists consider
NCREmost preferable (80%) and fossil fuels least feasible (20%).
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Nevertheless, the differences are not deep, except as regards the feasibility of fossil
fuels. Business persons and high government officials tend to highlight their feasibility; by
contrast, experts – together with politicians and ecologists – tend to stress the difficulties
for the concrete implementation of them.
In short, renewable sources receive a high level of preference and important
support in relation to feasibility. This means that RE have a broad and general level of
support from the elites in the four countries. However, as we have seen in the analysis,
the particularities of each country influence how feasible the energies are considered
to be. Socio-institutional positions clearly tend to influence preferences and views of
NCRE.
As we observe above, there is a basic rhetorical consensus on the RE preference.
Beyond this consensus, the in-depth semantic analysis of the discourses will reveal greater
differences that the statistical description on its own leaves unacknowledged.
The main perspective here is the development of a competitive energy market. The
main idea is the reference to energy consumption, with the implication that the factor
which can regulate consumption is the market value of energy. Energy consumption in
mining depends on a competitive energy market to operate at the best possible level of
competitiveness and profitability (with low prices).
‘So (mining) demand of energy is high and one of the major costs
affecting the competitiveness of the mining industry in Colombia is
the cost of energy’ (Colombian, interview n° 5).
The other principal main idea of this discourse is adequate energy policy that
involves permissive legislation to encourage private initiatives.
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The metal mining industry is viewed as ‘dependent’ on the energy sector. The
energy alternatives emphasised by the discourse model analysed are improving technology
for better efficiency and a search for diversified energy sources, fostering independence
and security. The incorporation of RE is only instrumental to that goal. Assuming that
mining demands considerable energy for its productive processes (electricity or fuel for the
extractive processes, or for facilities or transportation), this discursive model recognises
that the main energy comes from fossil sources.
The main semantic axis of the semiotic square on energy industrial consumption
is s1- Contaminating versus s2- Clean. The counter axis implies polluting energy with the
word necessary. Polluting energy is a necessary evil.
This discursive model conceives water and energy as essential supplies of a very
important economic activity for the development of extractive countries, a business which
seeks to be competitive and profitable in the international market economy. For this rea-
son water consumption must be minimised and energy efficiency and technology must be
optimised. Therefore, this model proposes rational use of resources, responsible energy con-
sumption and responsible growth, not stressing (and even showing scepticism regarding) RE.
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energy: coal, hydro, etc., that are, say, basic seeds’ (Member of Inter-
national Organisation based in Chile, interview n°1.).
In short, this discursive model generates a clear meaning around energy consump-
tion with the core concepts of efficient management, integrated management, regulations and
responsible consumption.
This model provides statements about the energy and water consumption in mi-
ning, with its significant core based on a political approach to sustainable development.
The main word here (s1) is problematic consumption that is opposed to (s2) efficiency
and recycling linked to sustainable mining.
The problematic use of water and energy/ volume decrease and pollution, is related
to ‘non-existent environmental control’ (no institutional supervision) where environ-
mental control is associated with the words ‘law’ and ‘politics’. Policy must consider the
best use of water and energy resources.
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Model four: Other development based on alternative energy matrices
This discursive model triggers meanings on energy from a critique of the environ-
mental impacts of mega-projects. In this context, the topic of water and energy industrial
consumption is discussed.
Specifically this discourse states that mining is becoming ‘incompatible with life’,
questioning the ‘over-consumption’ of water and energy and their inequitable consumption.
This discursive model proposes an alternative development that respects the balance of
the ecosystem.
As for energy consumption this discursive model clearly favours the transition to
RE, leaning toward NCRE, but mainly insists on conceiving the whole energy system
differently.
‘We are the country of the sun, of the water. Here we have a chance
and the potential to generate types of energy other than in terms of
oil.’ (Ecuadorian, interview n° 13).
The meaning articulating axis of this semiotic square is not renewable energy, as in
the previous discourse model three, but rather the design of the entire energy system and
its socio-technical form. As the discourse makes clear, hydropower and /or solar energy
projects must be developed with local communities and local governments.
The relationship between energy consumption by large-scale mining and the po-
tential increase of GHG emissions resulting from an increase in demand for fossil fuels
(coal, gas) is very present in this discourse. This reveals an explicit perception of the long
term inter-generational environmental justice.
Finally, relating to one of our main questions about this discourse production, from
the point of view of the socio-institutional position of the emitter we have the following
distribution:
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Discursive models
One Two Three Four Total
Absolute frequencies
Business person 17 1 1 0 19
High official 4 4 2 1 11
Politician 1 2 5 4 12
Expert 1 5 5 1 12
Ecologist 0 0 2 9 11
23 12 15 15 65
Relative frequencies
Business person 89 5 5 0 100
High official 36 36 18 9 100
Politician 8 17 42 33 100
Expert 8 42 42 8 100
Ecologist 0 0 18 82 100
35 18 23 23 100
Source: Research carried out by the author and his team.
ENGOV Project FP7 266710 and Fondecyt Proyect 1150607
As seen here, distribution differences are significant (Chi 2 = 40.84; sig. 000) and
revealing: model one is clearly affirmed by business persons, and not by respondents who
are politicians, experts and environmentalists. Model two is stated first by experts and
senior officials; it is not evident in texts of entrepreneurs and ecologists. Model three is
affirmed by politicians and experts. The model is slightly more significant in the case of
politicians. It is clearly less manifest in business persons. Model four is clearly evident in
the texts of the environmentalists interviewed, and to a lesser extent between politicians.
Clearly model four is not affirmed by the discursive text of business persons, and is slightly
present among experts.
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minant, for energy preferences, and mainly for the evaluation of the feasibility of energy
alternatives. Local particularities tend to affect a general positive rhetoric favouring RE
and energy transition. Nevertheless, the cultural models (framing the different types of
discursive models) are more powerful in shaping the direction in which the seminal ideas
support (or not) sustainable transition.
Both macro variables, semantic structure and country context are independent.
But which of them is more powerful in socially constructing the discourses: structure or
context?
The semantic discourse analysis revealed that, leaving aside contextual references,
there was a common semantic structure for each model. Surprisingly, core meanings in
the speeches and main arguments found in the main sample (even comparing the extreme
polar cases of Argentina, Chile vs. Colombia, Ecuador) are very similar, and this is why the
within-case analysis was feasible. In addition, the comparative samples, in their turn, are
very similar, coming from discourses found in two different Chilean samples separated by
time and space. It is this semantic similarity which enabled both the within-case method
and the inter-case comparative method.
However, the typology of models we have presented above should not be reduced
to a schematic analysis. Social dynamics affect the way discourses are enunciated, modi-
fied, and negotiated, and finally implemented. The political dimension of controversies
influence the different options of the actors involved, within the context of energy regimes
and conflicts (Hysing 2013).
Our interest has been centred on the framework of the energy transition processes
worldwide and how they are manifested in a specific region (in South America). A predo-
minant subjacent concern of a majority – beyond an ideal rhetoric – in the analysed elites’
discourses on the energy issue, is more focused on the interest of maintaining economic
growth and energy independence and security than ensuring cleaner energy consumption
(observed in models one and two). Nevertheless, the potential of turning the rhetoric
about energy transition into a real process of change should not be discounted, as our
analysis suggests (see models three and four).
The discourses supporting RE argue against scepticism regarding energy transition.
The views of the elites studied are varied but they clearly show less reluctance regarding
RE than existed a decade ago (Altomonte et al. 2003). Now, elites seem open, in prin-
ciple, to cleaner forms of energy and participatory ways to implement them (Seebach
2016)—but only some of them are truthfully open to accepting the post-hydrocarbon
energy paradigm.
The energy transition cannot be reduced to the strict relationship and dynamics
that exist between technologies and engineering systems: it certainly involves social actors
that can promote or hinder the process of change given their different cultural and value-
oriented frameworks between which, with a relevant role their environment concerns.
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Energy transition in South America 17 de 22
2018;21:e00891
Original Article
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ENERGY TRANSITION IN SOUTH AMERICA:
ELITE’S VIEWS IN THE MINING SECTOR, FOUR CASES UNDER STUDY
Abstract: Implementing a transition towards sustainable patterns of energy consumption
in the extractive sector, including energy efficiency and renewable energy sources, is an
ongoing, but incipient, process in South America. The focus here is on social representa-
tions of elites on ’sustainable energy consumption’ in the large-scale mining sector in Ar-
gentina, Chile, Colombia and Ecuador. The concepts of efficiency and non-conventional
renewable energy are widely accepted. The main question is: are elite views in these
countries favourable to energy transition and energy-sustainable industrial consumption
in the extractive sector? Notwithstanding a basic consensus, different views exists on
renewable and efficient energy, regulations and policies. In the semantic core of the
discourses, the different and contradictory interpretations of elite groups are evident. A
qualitative discourse analysis and a descriptive statistics comparison of these differences
reveal shifts in meaning, in social positions, and the influence of each country context in
the production of these discourses.
Keywords: energy transition; renewable energy; energy in Latin America; elites and
energy; elites in mining and energy.
Palabras clave: transición energética; energía renovable; energía en América Latina; élites
y energía; élites en la minería y la energía.