Evaluation of the impact of mining royalties on socio-environmental indicators in Parauapebas, Pará, the Eastern Amazon

Abstract

This research evaluated the impact of applying financial resources from mining exploitation (known as CFEM) on socio-environmental indicators in Parauapebas municipality, eastern Amazon. This study applies synthetic control methodology to establish a counterfactual for Parauapebas by weighting data from municipalities that did not experience the same impact due to the absence of mineral resources. We created synthetic indicators for before and after 1991, the initial year in which these royalties were received. Parauapebas municipality achieved a higher level of socio-environmental well-being with mining royalties than those without this activity. The rates (highest impact since 2000) for the population served with water were 3 %; sanitary sewage: 7 %; and waste collection: 3 %. Thus, resources allocation considers territory demands and expectations for the maintenance of municipality development. This research has important implications: it may guide the actions of various actors operating locally and support government development planning.