After COP 21, with the adoption of the Paris Agreement in December 2015, the outlook for carbon pricing policies has been widened. While the agreement does not directly establish a global carbon pricing, the provisions accounted for in Article 6 have the potential to increase international cooperation in favor of greenhouse gas (GHG) mitigation through market mechanisms. The Brazilian Nationally Determined Contribution (NDC) considers the use of such mechanisms, though the configuration of the Brazilian climate policy does not specify the economic instruments for carbon pricing. When examining the recent evolution of GHG emissions in Brazil, the already achieved reduction in deforestation sheds light on the need to address GHG mitigation in other sectors, such as industry. Therefore, this paper analyzes the impacts of carbon pricing on the Brazilian industry in terms of sectorial value added (VA), emissions intensity, international trade exposure, and the risk of carbon leakage. Results indicate that, considering a price of carbon of US$10/tCO 2 , the cost of reducing emissions from 35% to 45% (same range of the Brazilian NDC) could represent an impact of 0.3% to 3.7% on sectorial VA. However, results for emissions intensity and international trade reveal medium to high carbon leakage risks for all analyzed industrial sectors.
This study investigates the logistics network planning in a major Brazilian petrochemical company, taking into consideration the impact of tax-related costs, in addition to transportation and inventory costs. A Mixed Integer Nonlinear Programming model that considers the most relevant costs involved in the network planning process in Brazil was developed and subsequently applied to a case study of a large Brazilian petrochemical company. Our results support anecdotal reports regarding Brazilian companies intensely using 'product tourism' to take advantage of different interstate tax rates. Product tourism occurs when a logistically unnecessary flow of goods is established to a lower tax jurisdiction (with a corresponding increase in transportation costs) so that the company obtains a reduction in the amount of the taxes due.
This study was financed in part by the Coordenação de Aperfeiçoamento de Pessoal de Nível Superior -Brasil (CAPES) -Finance Code 001. We would like to thank CAPES for the financial support and to the producers Alessandra Bellas Romariz de Macedo and Cláudio Massato Matsuoka for the kindness and patience in solving all doubts about the Brazilian small farming. We also thank the Association of Citriculturists and Rural Producers of Tanguá (ACIPTA).
Green fiscal reforms would contribute to climate change mitigation, increase the economic efficiency of national tax systems and provide additional public revenues. Some countries in Latin America have already taken first steps towards green fiscal reforms. This outlook article provides an overview of the major challenges for the successful implementation of such reforms and discusses how they could be overcome.
This paper discusses Brazil’s role in climate governance, methodologically and metaphorically comparing it to chess pieces moves, based on national and regional official documents, commitments and data. Unlike other IR studies, our proposal suggests different behaviours at different levels of analysis for the same country. Nationally, the country played the role of pawn. Regionally, there is no unitary behaviour: in international cooperation (carbon pricing case), it moves like a queen; in the regional integration process (energy integration case), like a king. The current scenario raises doubts about these roles, suggesting that Brazil has been presenting an increasingly moderate and conservative behaviour in the past years.
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