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Oil windfalls in Brazil and their long-run social impacts

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  • Postali, Fernando Antonio Slaibe
  • Nishijima, Marislei

Abstract

In 1997, Brazil changed the regulatory framework of its oil and gas sector. After this change, a restrict subset of localities started to receive large amounts of oil rents. The goal of this paper is to evaluate whether such rents distributed under this law contributed to improving some social indicators relative to the national average in the eligible municipalities. We used a “difference-in-differences” measurement to compare changes in selected social indicators within affected Municipalities in the last two decades, taking the unaffected districts as control group. The Municipal data on social indicators were collected from three National Censuses, conducted in 1991, 2000 and 2010. Results show that royalties had a positive and statistically significant impact on household’s access to electric wiring, piped water and waste collection, as well as in the decrease of illiteracy rate. This means the eligible districts were able to improve some of their social indicators in the long-run.

Suggested Citation

  • Postali, Fernando Antonio Slaibe & Nishijima, Marislei, 2013. "Oil windfalls in Brazil and their long-run social impacts," Resources Policy, Elsevier, vol. 38(1), pages 94-101.
    • Handle: RePEc:eee:jrpoli:v:38:y:2013:i:1:p:94-101
    DOI: 10.1016/j.resourpol.2012.10.003
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    1. Fernando Antonio Slaibe Postali & Fabiana Fontes Rocha, 2011. "Resource windfalls,fiscal effort and public spending: evidence from Brazilianmunicipalities," Anais do XXXVII Encontro Nacional de Economia [Proceedings of the 37th Brazilian Economics Meeting] 64, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
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    Cited by:

    1. Nishijima, Marislei & Sarti, Flavia Mori & Canuto, Otaviano, 2020. "Does the Brazilian policy for oil revenues distribution foster investment in human capital?," Energy Economics, Elsevier, vol. 88(C).
    2. Gadom Djal Gadom & Armand Mboutchouang Kountchou & Gbetoton Nad ge Ad le Djossou & Gilles Quentin Kane & Abdelkrim Araar, 2017. "The impact of oil exploitation on wellbeing in Chad," Working Papers PMMA 2017-06, PEP-PMMA.
    3. Weichenrieder, Alfons, 2017. "Should the Global Community Welcome or Mourn New Oil Discoveries?," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168089, Verein für Socialpolitik / German Economic Association.
    4. Majbouri, Mahdi, 2015. "Calculating the income counterfactual for oil producing countries of the MENA region," Resources Policy, Elsevier, vol. 44(C), pages 47-56.
    5. Sylwia Bialek & Alfons J. Weichenrieder, 2022. "Should the global community welcome new oil discoveries?," Journal of Economics, Springer, vol. 137(3), pages 255-278, December.
    6. Felipe de S Tavares & Alexandre Almeida & Fernando Postali, 2021. "Does Oil Dependence Affect Regional Wealth? A Regional Study for the Municipalities of the State of Rio de Janeiro," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 381-391.
    7. repec:bla:afrdev:v:29:y:2017:i:s1:p:42-55 is not listed on IDEAS
    8. Mahdi Majbouri, 2015. "Estimating the Income Counterfactual for Oil Producing Countries of the MENA Region," Working Papers 904, Economic Research Forum, revised Apr 2015.
    9. Araujo Rodrigues, Larissa & Luís Sauer, Ildo, 2015. "Exploratory assessment of the economic gains of a pre-salt oil field in Brazil," Energy Policy, Elsevier, vol. 87(C), pages 486-495.
    10. Aloise de Seabra, Alessandra & Khosrovyan, Alla & Del Valls, T. Angel & Polette, Marcus, 2015. "Management of pre-salt oil royalties: Wealth or poverty for Brazilian coastal zones as a result?," Resources Policy, Elsevier, vol. 45(C), pages 1-8.
    11. Tiago P. Ferraz, 2016. "Benefit Sharing Exploring Water Resources in Brazil," Working Papers, Department of Economics 2016_13, University of São Paulo (FEA-USP).

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    More about this item

    Keywords

    Oil rents; Royalties; Regional development; Social indicators;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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