SHORT-TERM ECONOMIC IMPACTS OF THE PORTO DE SERGIPE THERMAL POWER PLANT

Abstract

This work analyzes the short-term regional and sectorial impacts of the construction of the Porto de Sergipe Thermoelectric Power Plant. For this purpose, the inter-regional input-output system of Sergipe is used, base year 2009, consisting of 82 sectors and 5 regions: 3 sub-regions of Sergipe, rest of the Northeast, rest of Brazil. The simulations results shows that the region where the plant is located would suffer the greatest economic impact. In the background, the rest of Brazil stands out, the main destination for leaks, the low capacity of the other regions (rest of the northeast) to absorb the demand generated by the structuring investment. The most impacted sectors would be the capital-intensive ones. The results point out the low capacity of this region to meet the demands for goods and services of an investment within its own territory.