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USINAS HIDRELÉTRICAS NO BRASIL GERAM EFEITOS ECONÔMICOS LOCAIS DIVERSOS

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This executive summary describes a study by the NAPC/CPI and BNDES evaluating the local economic impacts of hydroelectric power plants (UHEs) in Brazil. Analyzing 82 municipalities across 13 states where construction began between 2002 and 2011, the study finds that positive economic effects are generally short-term and vary significantly by location, suggesting that UHEs do not fundamentally transform local economies.

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  • The economic impact of hydroelectric plants on surrounding areas varies significantly, with positive and negative effects typically being short-term. Economic growth observed during the first two or three years after construction begins generally dissipates after five or six years, coinciding with the end of construction.
  • UHE construction significantly boosts formal employment in the short term, with an average increase of 10% to 37% in the first year compared to municipalities without plants. However, this effect stabilizes to an average of 8% to 14% five years after construction begins.
  • There is extreme variation in employment outcomes between municipalities: approximately one quarter saw formal employment at least 38% higher than non-UHE municipalities, while another quarter saw it 15% lower.
  • The construction of hydroelectric plants does not lead to deep structural transformations in local economies, as the share of formal employment across sectors—including industry, services, retail, agriculture, and construction—remains unchanged.
  • Total municipal revenue (including taxes, intergovernmental revenues, and financial compensation) increases during the first and second years after construction starts, eventually stabilizing at approximately 4% higher than in municipalities without plants.
  • While tax revenues can increase by up to 35% two years after a UHE arrives, this effect decreases to 2.5% in the medium term. The remaining 2.5% increase in current revenues likely stems from state and federal transfers or financial compensation from the projects rather than local tax collection.

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APA
Assunão, J., Szerman, D., & Costa, F. (2017). USINAS HIDRELÉTRICAS NO BRASIL GERAM EFEITOS ECONÔMICOS LOCAIS DIVERSOS. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2017/11/Resumo_Usinas_hidreletricas_no_Brasil_geram_efeitos_economicos_locais_diversos.pdf
Chicago
Assunão, Juliano, Dimitri Szerman, and Francisco Costa. USINAS HIDRELÉTRICAS NO BRASIL GERAM EFEITOS ECONÔMICOS LOCAIS DIVERSOS. Climate Policy Initiative, 2017. https://www.climatepolicyinitiative.org/wp-content/uploads/2017/11/Resumo_Usinas_hidreletricas_no_Brasil_geram_efeitos_economicos_locais_diversos.pdf.
Wikipedia
{{cite report |last1=Assunão |first1=Juliano |last2=Szerman |first2=Dimitri |last3=Costa |first3=Francisco |title=USINAS HIDRELÉTRICAS NO BRASIL GERAM EFEITOS ECONÔMICOS LOCAIS DIVERSOS |publisher=Climate Policy Initiative |date=November 2017 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2017/11/Resumo_Usinas_hidreletricas_no_Brasil_geram_efeitos_economicos_locais_diversos.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{assuno2017usinas, author = {Assunão, Juliano and Szerman, Dimitri and Costa, Francisco}, title = {{USINAS HIDRELÉTRICAS NO BRASIL GERAM EFEITOS ECONÔMICOS LOCAIS DIVERSOS}}, institution = {Climate Policy Initiative}, year = {2017}, month = nov, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2017/11/Resumo_Usinas_hidreletricas_no_Brasil_geram_efeitos_economicos_locais_diversos.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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