MINING ROYALTIES AND SOCIOECONOMIC DEVELOPMENT IN PARÁ

This research paper describes the methodology and results of a study analyzing the correlation between mining royalties (CFEM) and socioeconomic development in the state of Pará, Brazil. Using a Fixed Effect design, the study examines outcomes in health, education, employment, income, and violence, as well as municipal fiscal expenditures and revenues.

• When using a methodology that does not account for fixed characteristics of municipalities, mining royalties show positive and statistically significant correlations with health, education, employment, income, and violence. However, when netting out fixed effects for both municipality and year, no statistical significance is found for economic outcomes, and the correlation with the homicide rate becomes negative.
• An increase of R$ 1 in mining royalties is associated with an equal increase in total expenditures, split evenly between current and capital expenses. The areas most affected by these increases are public sector wages and pensions, followed by education and health expenses.
• The study suggests that mining royalties do not necessarily result in direct spending in health and education, but may instead trigger budget adjustments. Additionally, there is no associated increase in fiscal revenue from the urban property tax (IPTU), which may indicate that royalties reduce the fiscal effort of the municipalities that receive them.
• Geographical analysis of the Firjan Index of Municipal Development (IFDM) shows that municipalities with high mining royalties exhibit varied performance. Canaã dos Carajás, Parauapebas, Curionópolis, and Marabá generally perform well, whereas Itatituba, Novo Progresso, Oriximiná, and Terra Santa show poor performance, specifically in employment, income, and health.

APA

Climate Policy Initiative (2022). MINING ROYALTIES AND SOCIOECONOMIC DEVELOPMENT IN PARÁ. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/06/METHODOLOGY_MINING-ROYALTIES-PARA_EN.pdf

Chicago

Climate Policy Initiative. MINING ROYALTIES AND SOCIOECONOMIC DEVELOPMENT IN PARÁ. 2022. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/06/METHODOLOGY_MINING-ROYALTIES-PARA_EN.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=MINING ROYALTIES AND SOCIOECONOMIC DEVELOPMENT IN PARÁ |date=July 2022 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2022/06/METHODOLOGY_MINING-ROYALTIES-PARA_EN.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2022mining, author = {{Climate Policy Initiative}}, title = {{MINING ROYALTIES AND SOCIOECONOMIC DEVELOPMENT IN PARÁ}}, institution = {Climate Policy Initiative}, year = {2022}, month = jul, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2022/06/METHODOLOGY_MINING-ROYALTIES-PARA_EN.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }