Economics of Greenhouse Gas Limitations COUNTRY STUDY SERIES Ecuador

The report analyzes Ecuador's energy sector, focusing on its heavy reliance on oil and the potential for reducing CO2 emissions. It proposes a mitigation scenario involving increased energy efficiency in households, industry, and transport, alongside a shift toward renewable energy in power generation.

• Ecuador's economy is heavily dependent on the oil sector, which accounted for approximately 14.1% of GDP and 31.06% of total exports as of the reporting period.
• The country faces significant deforestation, with a net loss of almost 1.3 million hectares of forest cover between 1985 and 1992, resulting in an annual average deforestation rate of 178,000 hectares.
• Oil and gas products dominate the final energy consumption mix, providing 71% of total demand.
• The transport sector is the primary emitter of greenhouse gases in the Ecuadorian energy system, with gasoline and diesel as the main fuels.
• The report identifies a significant potential for energy savings in the residential sector, estimated at 40 PJ by 2030, which represents 32% of household energy consumption under the reference scenario.
• In the mitigation scenario, total primary energy requirements by 2030 are reduced by 214 PJ, or approximately 21% compared to the reference case.
• The mitigation scenario proposes shifting the power generation mix by 2030 to reduce thermal generation from oil from 73% (reference case) to 40%, increasing the share of natural gas, geothermal, and wind energy to 17%.
• Total CO2 reductions achieved in the mitigation scenario by 2030 are estimated at 15 million tons, with 52% of these reductions resulting from electricity savings in power generation.
• The most cost-effective CO2 reduction option identified is the improvement of household lighting, with a cost of 1.5 USD per ton of CO2.
• The report suggests a 20% fuel tax on light cargo gasoline vehicles as a mitigation tool to incentivize the adoption of more efficient technology.
• Ecuador's electricity supply is highly vulnerable to the dry season, as major hydropower stations like Paute, Agoyán, and Pisayambo rely on a single hydrological basin.
• The government provides substantial subsidies for liquefied petroleum gas (LPG), which the report describes as regressive because it primarily benefits higher-income groups.

APA

Stockholm Environment Institute (1999). Economics of Greenhouse Gas Limitations COUNTRY STUDY SERIES Ecuador. https://cdn.leap.sei.org/documents/Ecuador.pdf

Chicago

Stockholm Environment Institute. Economics of Greenhouse Gas Limitations COUNTRY STUDY SERIES Ecuador. 1999. https://cdn.leap.sei.org/documents/Ecuador.pdf.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Economics of Greenhouse Gas Limitations COUNTRY STUDY SERIES Ecuador |date=1999 |url=https://cdn.leap.sei.org/documents/Ecuador.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute1999economics, author = {{Stockholm Environment Institute}}, title = {{Economics of Greenhouse Gas Limitations COUNTRY STUDY SERIES Ecuador}}, institution = {Stockholm Environment Institute}, year = {1999}, url = {https://cdn.leap.sei.org/documents/Ecuador.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }