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Environmental disasters and their impacts on the Brazilian economy: the mining industry case

Author

Listed:
  • Luana Nátali Oliveira Silva

    (Federal University of Grande Dourados (UFGD))

  • Jonathan Gonçalves Silva

    (Federal University of Grande Dourados (UFGD))

  • Roselaine Bonfim Almeida

    (Federal University of Grande Dourados (UFGD)
    Federal University of Grande Dourados (UFGD))

Abstract

Brazil has been known for its mineral resources, which have been exploited by companies spread for the whole country. Nonetheless, the Brazilian mining sector has also been known for the recent disasters which have generated unprecedented social, economic, and environmental costs. In this way, this work presents an analysis of the impacts of the imposition of a new tax on the Brazilian mining activity, since it is a potential cause of negative externalities, causing damage to the environment and the society. For this, the computable general equilibrium (CGE) model was used. The results show that the introduction of a tax for the mining sector increased the production cost of mining activity and related sectors, which implies a reduction in economic dynamism. On the other hand, an introduction of the tax has also generated an increase in government revenues, which can finance new spending on other sectors of the country. Therefore, the economic losses resulting from the policy are not very pronounced, making it feasible to impose the tax on mining activity.

Suggested Citation

  • Luana Nátali Oliveira Silva & Jonathan Gonçalves Silva & Roselaine Bonfim Almeida, 2024. "Environmental disasters and their impacts on the Brazilian economy: the mining industry case," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 23817-23837, September.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:9:d:10.1007_s10668-023-03624-z
    DOI: 10.1007/s10668-023-03624-z
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    References listed on IDEAS

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