An economic study on the relationship between mining royalties and the environment

• Grant number: 17/17453-9
• Support Opportunities: Scholarships in Brazil - Scientific Initiation
• Start date: October 01, 2017
• End date: September 30, 2018
• Field of knowledge: Applied Social Sciences - Economics
• Principal Investigator: Fernando Antonio Slaibe Postali
• Grantee: João Pedro Gonçalves Soares
• Host Institution: Faculdade de Economia, Administração e Contabilidade (FEA). Universidade de São Paulo (USP). São Paulo , SP, Brazil

Abstract

Brazil is one of the largest producers and exporters of mineral goods in the world. Given the importance of the Brazilian mineral industry and its adverse impacts on the environment, it is expected that the regions where these activities occur seek to preserve the quality of life of its population by adequate investment in the environment. Brazilian legislation provides for a mechanism for taxing any mineral extraction activity, a royalty called Compensação Financeira pela Exploração Mineral (CFEM). The objective of this study is to investigate whether there is a relationship between the mining royalties (CFEM) and environmental investments by municipalities contemplated. The aim is to thus contribute to the discussion on the improvement of the regulatory framework for the mining sector, which began to be reviewed this year. (AU)