IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/42453.html
   My bibliography  Save this paper

Impacto da diferenciação do ICMS entre etanol hidratado e gasolina C para a economia do Estado de Minas Gerais
[Impact of the ICMS differentiation between hydrated ethanol and gasoline C for the economy of the State of Minas Gerais]

Author

Listed:
  • Cabral da Costa, Cinthia
  • Guilhoto, Joaquim José Martins

Abstract

The taxation policy of the Tax on Circulation of Goods and Services (ICMS) differentiated between fuel encourages ethanol consumption because of the lower rate charged on it in relation to that charged on gasoline C in some states of Brazil. The State of Sao Paulo has a lower tax rate for hydrous ethanol (12%) compared to gasoline C (25%). This study aimed to identify the impacts on the Brazilian economy resulting from a policy of differentiation between the fuel tax that benefits the ethanol consumption. For this, we analyzed the losses that could be generated by the increase in tax rate for ethanol in Sao Paulo. The methodology was used to analyze the input-output matrix, being the same for the year 2004 and specific to the State of Sao Paulo. The results indicated that the reduction in the rate of VAT for hydrous ethanol relative to gasoline, has economic benefits (increase in values of GDP, production and reduced imports) and social (increase in the amount of the fee and posts employment) for the Brazilian economy. We conclude that taxation policies may be essential for the development of some markets and that such development can generate economic and social gains. Sectors related to agribusiness, as the case of hydrated ethanol in this study indicate this fact.

Suggested Citation

  • Cabral da Costa, Cinthia & Guilhoto, Joaquim José Martins, 2010. "Impacto da diferenciação do ICMS entre etanol hidratado e gasolina C para a economia do Estado de Minas Gerais [Impact of the ICMS differentiation between hydrated ethanol and gasoline C for the ec," MPRA Paper 42453, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:42453
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/42453/1/MPRA_paper_42453.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Guilhoto, J. J. M. & Sesso Filho, U. A., 2005. "Estimação da Matriz Insumo-Produto a Partir De Dados Preliminares das Contas Nacionais [Estimation of input-output matrix using preliminary data from national accounts]," MPRA Paper 38212, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vinhais, Henrique & Guilhoto, Joaquim, 2012. "Economic Impact of the Expansion of Federal Universities in Brazil," TD NEREUS 16-2012, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    2. Guilhoto, J. J. M. & Ichihara, S. M. & Silveira, F. G. & Azzoni, Carlos Roberto, 2006. "Comparação Entre O Agronegócio Familiar Do Rio Grande Do Sul E Do Brasil [Comparing The Agribusiness For The State Of Rio Grande Do Sul And For Brazil As A Whole]," MPRA Paper 38040, University Library of Munich, Germany.
    3. Florent Bédécarrats & Isabelle Guérin & François Roubaud, 2015. "The gold standard for randomized evaluations: from discussion of method to political economy," Working Papers DT/2015/01, DIAL (Développement, Institutions et Mondialisation).
    4. Guilhoto, Joaquim José Martins & Camargo, Fernanda Sartori de, 2008. "Employment and familiar agriculture agribusiness in the Brazilian economy: an interregional Leontief-Miyazawa model approach," MPRA Paper 29781, University Library of Munich, Germany.
    5. Eduardo A. Haddad & Juan M. G. Samaniego, Alexandre A. Porsse, Diego Ochoa, Santiago Ochoa, Luiz G. A. de Souza, 2011. "Interregional Input-Ouptut System for Ecuador, 2007: Methodology and Results," Working Papers, Department of Economics 2011_08, University of São Paulo (FEA-USP).
    6. Compeán, Roberto Guerrero & Polenske, Karen R., 2011. "Antagonistic bioenergies: Technological divergence of the ethanol industry in Brazil," Energy Policy, Elsevier, vol. 39(11), pages 6951-6961.
    7. Eduardo A. Haddad & Natalia Q. Cotarelli, Thiago C. Simonato, Vinicius A. Vale & Jaqueline C. Vicentin, 2018. "Estimation of NUTS2 Interregional Input-Output Systems for Greece, 2010 and 2013," Working Papers, Department of Economics 2018_07, University of São Paulo (FEA-USP).
    8. Haddad, Eduardo & Marques, Maria Carolina, 2012. "Technical Note on the Construction of the Interregional Input-Output System for the Concession Areas of ANEEL," TD NEREUS 5-2012, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    9. Perobelli, Fernando Salgueiro & Guilhoto, Joaquim & Faria, Weslem Rodrigues, 2006. "Impacto Das Exportações Brasileiras Para O Mercosul, União Européia E Nafta Sobre Produção E Emprego: Uma Análise De Insumoproduto Para 1997 -2001," 44th Congress, July 23-27, 2006, Fortaleza, Ceará, Brazil 147394, Sociedade Brasileira de Economia, Administracao e Sociologia Rural (SOBER).
    10. Guilhoto, Joaquim José Martins, 2011. "Análise de Insumo-Produto: Teoria e Fundamentos [Input-Output Analysis: Theory and Foundations]," MPRA Paper 32566, University Library of Munich, Germany.
    11. da Silva Freitas, Lucio Flavio & de Santana Ribeiro, Luiz Carlos & de Souza, Kênia Barreiro & Hewings, Geoffrey John Dennis, 2016. "The distributional effects of emissions taxation in Brazil and their implications for climate policy," Energy Economics, Elsevier, vol. 59(C), pages 37-44.
    12. Avelino, André Fernandes Tomon & Guilhoto, Joaquim José Martins, 2009. "Ecological payback in Brazil energy matrix: analysis of a wind energy expansion," MPRA Paper 30836, University Library of Munich, Germany.
    13. R. Azzoni, Carlos & J. M. Guilhoto, Joaquim & A. Haddad, Eduardo & G. Silveira, Fernando & A. Menezes, Tatiane & M. Hasegawa, Marcos, 2005. "Commodity Price Changes and Their Impacts on Poverty in Developing Countries: the Brazilian Case," TD NEREUS 2-2005, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    14. Nelson Marconi & Igor L. Rocha & Guilherme R. Magacho, 2016. "Sectoral capabilities and productive structure: An input-output analysis of the key sectors of the Brazilian economy," Brazilian Journal of Political Economy, Center of Political Economy, vol. 36(3), pages 470-492.
    15. Rathmann, Régis & Szklo, Alexandre & Schaeffer, Roberto, 2012. "Targets and results of the Brazilian Biodiesel Incentive Program – Has it reached the Promised Land?," Applied Energy, Elsevier, vol. 97(C), pages 91-100.
    16. Joaquim J. M. Guilhoto & Silvio M. Ichihara & Fernando Gaiger Silveira & Bernardo P. Campolina Diniz & Carlos R. Azzoni & Guilherme R. C. Moreira, 2007. "A Importância Da Agricultura Familiar No Brasil E Em Seus Estados," Anais do XXXV Encontro Nacional de Economia [Proceedings of the 35th Brazilian Economics Meeting] 089, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    17. Eduardo Haddad & Juan Manuel Samaniego & Alexandre Porsse & Santiago Ochoa & Luiz Gustavo Souza, 2011. "Interregional Interdependence among Ecuadorian Provinces: An Input-Output Analysis," ERSA conference papers ersa11p836, European Regional Science Association.
    18. Santos, Rafaela Nascimento & Ribeiro, Luiz Carlos de Santana & Santana, José Ricardo de, 2022. "The effects of oil royalties on regional inequality in Brazil," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
    19. Ichihara, Silvio Massaru & Guilhoto, Joaquim J.M. & Amorim, Márcio Guerra, 2007. "Mudanças estruturais do emprego na economia brasileira: 1996 e 2002 comparados [Structural changes in employment in the economy: 1996 and 2002 compared]," MPRA Paper 31514, University Library of Munich, Germany.
    20. Joaquim Guilhoto & Cinthia Costa & Marcelo Cunha & Kathleen Araujo, 2011. "The Role of Ethanol in the Brazilian Economy: Three Decades of Progress," ERSA conference papers ersa11p1478, European Regional Science Association.

    More about this item

    Keywords

    insumo-produto; etanol; gasolina; ICMS; Brasil;
    All these keywords.

    JEL classification:

    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:42453. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.