ANDEANS VS NORDIC. ENERGY AS A DETERMINING FACTOR. 1870-1930
Nya Fest Session 2: Sustainability and energy transitions in economic and business history organized by Mattias Näsman and Josef Taalbi
Abstract
There are numerous differences that explain the economic trajectory of Nordic and Andean countries (Ducoing & Peres-Cajías, 2021; Ducoing et. al., 2018). However, one difference that has not received enough attention is energy. During the 19th century and first decades of the 20th century, traditional energy reserves in the form of firewood were abundant in Nordic countries. In contrast, in Chile, Bolivia and Peru these reserves were not only scarce but also depleted by mid-19th century due to intensive mining activities. The availability of firewood allowed Nordic countries to develop early industries that were intensive in natural resources. On the other hand, depletion of firewood reserves in Andean countries would have limited them to depend on mineral coal for their industrialization. This article argues that availability of firewood was a necessary condition for industrial takeoff during 19th century and Nordic countries had advantages in their endowment of natural resources compared to Andean countries which could lead to significant differences in their early economic development.
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