Abstract

Over the past decade Chile has successfully followed a low-carbon pathway based largely on solar power and has received international praise for this positive development. However, on closer analysis this trajectory may have a negative impact by amplifying energy poverty. The Chilean narrative discusses the country’s low-carbon pathway in the context of other objectives. It focuses particularly on the carbon tax established in 2017 as a manifestation of the country’s commitment to this pathway, and the potential risk of increasing energy poverty under four scenarios. This risk could be mitigated by creating a mechanism for monetary compensation for the most vulnerable population. The engagement process designed for this analysis revealed additional risks and uncertainties associated with Chile’s low-carbon futures that cannot (yet) be quantified.