The Renewable Energy Receiving Hub in Maranhão: an assessment of economic impacts

Abstract

This study analyzes the economic impacts of a US$ 1.6 billion investment in the development of the Renewable Energy Hub in Maranhão, Brazil. Using the Interstate Input-Output Matrix of the Legal Amazon, the direct and indirect effects on output, gross value added (GVA), employment and tax revenue were estimated. The results indicate that the infrastructure and construction sector would account for 88.6% of total output generated (US$ 2.1 billion), while trade, transportation and warehousing would lead in job creation, with 11 378 direct positions. Tax revenue in the state would reach US$ 71 million, representing 96.5% of the total tax impact in the Legal Amazon. The GVA analysis suggests higher value retention in service and trade activities compared with industrial and infrastructure sectors. The study also addresses environmental and social challenges associated with the expansion of energy infrastructure, emphasizing the importance of public policies aimed at mitigating socio-environmental impacts and fostering sustainable development.