A note on the implementation of wind farms in the Northeast region of Brazil and its impacts on the municipal ICMS quota

Resumo

This paper tests the hypothesis that the implementation of a generation park and wind energy affects the distribution of ICMS to northeastern municipalities. For this, data from the municipal share quota and the differences-in-differences model with multiple periods, proposed by Callaway and Sant'Anna (2021), are used. The results point to an increase of 24.41% in the ICMS share in the municipalities that received wind farms. It should be noted, however, that due to the dynamic effect, this implication can only be observed from the second year after the operation of the plants, a factor that may be associated with exemptions as a form of tax incentives.

Ficha do documento

Tipo

Artigo científico

Ano

2025

Instituição

EGV EPGE

Fonte

Revista Brasileira de Economia

Idioma

Português

Acesso

Não informado

Identificador

oai:ojs.periodicos.fgv.br:article/89817

Abrangência

Municipalities in the Northeast region of Brazil, from 2004 to 2019.; Municípios da região Nordeste do Brasil, no período de 2004 a 2019.

Temas

EconomiaInfraestruturaDesenvolvimento RegionalGestão Municipal

Palavras-chave

Wind farmsICMS quotaImpactsNortheastern municipalitiesEnergy EconomicsRegional economicsParques eólicosCota parte do ICMSImpactosMunicípios nordestinosEconomia e EnergiaMétodos QuantitativosEconomia Regional