Impact assessment of public policies in the municipalities covered by the Brazilian Incentive program for alternative electricity sources (PROINFA)

Abstract

Assessing the impacts of public policy allows us to show if public resources were used in an efficient way and if it has reached the population in a democratic way. The expansion of the electric sector benefits the entire population, providing social well-being and not only an interventionist economic policy. This article has assessed the impact of public policy in the municipalities covered by PROINFA - Incentive Program for Alternative Energy Sources. This program was based on the insertion of renewable sources on Brazilian power matrix, hitched to the principles of energy efficiency, economic development, and the promotion of social well-being. A program analysis ex post e ex ante was performed and used the econometric models PSM and Diff-in-Diff about socioeconomic indicators, from 2002 to 2018. The control group was the municipalities that received power plants benefited by PROINFA and the treatment group, those municipalities that showed similar features through the selected covariates. Results has showed that PROINFA presented a 10 % rise in per capita incoming on municipalities, 13,82 % in number of formal workers and 0,39 % in capital expenditure, demonstrating that program beneficiaries have achieved economic and social development. The ex-ante e ex post analysis of the public policy has indicated a good program coordination level between the organizations which has planned and executed the policy, MME and Eletrobrás, and used suitable methods for the achievement of the purposes in the implementation of the policy. It is concluded that PROINFA made positive impacts to the municipalities within its scope and collaborated with its regional development, as a policy aimed to ensure the sustainability of the economic development, which certainly requires planning and government engagement.Assessment of the impacts of public policies can confirm if public resources were used efficiently and if the population was reached democrately. Expansion of the electric sector benefits the entire population, going further than just an interventionist economic policy and providing social well-being. This study evaluates the impact of public policies in the municipalities covered by the Brazilian Incentive Program for Alternative Electricity Sources (PROINFA). This program was based on introducing renewable sources in the Brazilian electricity matrix, aligned with the principles of energy efficiency, economic development, and the promotion of social well-being. Ex-post and ex-ante analyses are carried out for the program, employing the econometric models Propensity Score Matching and Difference-In-Differences, from 2002 to 2018. The control group encompassed the municipalities that benefitted from PROINFA (which received power plants) and the treatment group (municipalities that presented similar features through the selected covariates). Results show that PROINFA increased per capita income by 10 %, increased the number of formal workers by 13.82 %, and led to a growth of 0.39 % in capital expenditure, demonstrating that beneficiaries achieved economic and social development. The ex-ante and ex-post analyses of the public policy indicated good coordination between the organizations (responsible for planning and execution), the Brazilian Ministry of Mines and Energy, and Eletrobrás. Suitable methods were employed for the achievement of the purposes in the implementation of the policy. PROINFA positively impacted the municipalities within its scope and collaborated with regional development as a policy aimed at ensuring the sustainability of economic growth.