Análisis económico: Dependencia del carbón y oportunidades de reconversión productiva en Paipa

This policy brief analyzes the economic dependence of Paipa, Colombia, on coal mining and coal-fired power generation. It evaluates the risks posed by the energy transition and proposes a productive reconversion strategy focused on tourism, traditional manufactures, and the agricultural sector to diversify the local economy.

• Paipa's economy is heavily dependent on coal and coal-fired electricity generation, with nearly one-third of its production and employment linked directly or indirectly to these activities.
• The electric sector is the primary driver of Paipa's local economy due to its high backward linkages, largely because it demands coal produced within the municipality.
• The dependence on coal-fired power generation is even more critical; the cessation of this activity would cause a 78.6% contraction in Paipa's total production, representing a loss of 1.2 trillion pesos.
• The reduction of coal exploitation by 2035 is estimated to cause a decline in total production between 7.5% and 12%, with a potential loss of 470 to 780 jobs in the sector. Including suppliers, the total job loss could reach between 1,370 and 1,460 positions.
• Tourism, traditional manufactures, and agriculture are identified as the primary sectors for economic diversification. Specifically, Paipa is the most visited municipality in Boyacá, with 89% of tourists visiting for nature and cultural tourism between 2023 and 2024.
• Traditional food manufactures, such as Paipa cheese (which has a protected designation of origin since 2011) and 'amasijos', serve as key tourist attractions but are currently limited by the seasonality of tourism.
• The agricultural sector shows potential in potato, blackberry, and bovine cattle (specifically Normande breed) production. However, it faces challenges such as price volatility, high production costs, and competition from imports of bulb onions from Peru and Ecuador.
• To offset the economic losses from the coal transition, the tourism, agricultural, and manufacturing sectors would need to accelerate their annual growth by 2.3% above their historical rates between 2026 and 2035.

APA

Ramírez, F., Saavedra, P., & Castro, K. (n.d.). Análisis económico: Dependencia del carbón y oportunidades de reconversión productiva en Paipa. Transforma. https://transforma.global/wp-content/uploads/2026/04/260331-Analisis-Paipa-2.pdf

Chicago

Ramírez, Fabián, Paola Saavedra, and Karem Castro. Análisis económico: Dependencia del carbón y oportunidades de reconversión productiva en Paipa. Transforma, n.d. https://transforma.global/wp-content/uploads/2026/04/260331-Analisis-Paipa-2.pdf.

Wikipedia

{{cite report |last1=Ramírez |first1=Fabián |last2=Saavedra |first2=Paola |last3=Castro |first3=Karem |title=Análisis económico: Dependencia del carbón y oportunidades de reconversión productiva en Paipa |publisher=Transforma |url=https://transforma.global/wp-content/uploads/2026/04/260331-Analisis-Paipa-2.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ramrezndanlisis, author = {Ramírez, Fabián and Saavedra, Paola and Castro, Karem}, title = {{Análisis económico: Dependencia del carbón y oportunidades de reconversión productiva en Paipa}}, institution = {Transforma}, url = {https://transforma.global/wp-content/uploads/2026/04/260331-Analisis-Paipa-2.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }