Daniel de Abreu Pereira Uhr, Mikael Jhordan Lacerda Cordeiro and Júlia Gallego Ziero Uhr
This research assesses the economic impact of biomass plant installations on Brazilian municipalities, focusing on (1) labor income, (2) sectoral labor income and (3) income…
Abstract
Purpose
This research assesses the economic impact of biomass plant installations on Brazilian municipalities, focusing on (1) labor income, (2) sectoral labor income and (3) income inequality.
Design/methodology/approach
Municipal data from the Annual Social Information Report, the National Electric Energy Agency and the National Institute of Meteorology spanning 2002 to 2020 are utilized. The Synthetic Difference-in-Differences methodology is employed for empirical analysis, and robustness checks are conducted using the Doubly Robust Difference in Differences and the Double/Debiased Machine Learning methods.
Findings
The findings reveal that biomass plant installations lead to an average annual increase of approximately R$688.00 in formal workers' wages and reduce formal income inequality, with notable benefits observed for workers in the industry and agriculture sectors. The robustness tests support and validate the primary results, highlighting the positive implications of renewable energy integration on economic development in the studied municipalities.
Originality/value
This article represents a groundbreaking contribution to the existing literature as it pioneers the identification of the impact of biomass plant installation on formal employment income and local economic development in Brazil. To the best of our knowledge, this study is the first to uncover such effects. Moreover, the authors comprehensively examine sectoral implications and formal income inequality.
Details
Keywords
Samuel Tawiah Baidoo, Daniel Sakyi and Emmanuel Buabeng
This paper investigates whether financial sector development promotes economic globalization (EG) using data from 45 African countries.
Abstract
Purpose
This paper investigates whether financial sector development promotes economic globalization (EG) using data from 45 African countries.
Design/methodology/approach
Using panel data of the selected African countries, the two-step system generalized method of moments estimation technique which is capable of solving any possible endogeneity problem is employed for the empirical analysis.
Findings
The main finding is that all measures of financial sector development have a significant positive impact on EG in Africa. The results suggest that improving the financial sector development in a holistic manner is key in fostering EG in Africa.
Originality/value
This present paper uses broader measures of EG and financial sector development. Using broader measures of these variables widens the policy scope in terms of policy adoption and implementation.