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Virtual Water Footprint of Mato Grosso exports versus Federal Onlendings Kandir Law and FEX: an analysis of the 2013-2017 period

Abstract:

Indispensable for the production of all goods and services, water is used free of charge, mainly for agricultural production, and a large part of this production is exported, including water, called virtual water. Thus, the objective of the study is to compare the use of the Virtual Water Footprint of Mato Grosso exports with the refunds applied by the Kandir Law and Financial Aid for Export Promotion (FEX) received by the State and its municipalities. The study is descriptive, bibliographic, with a quantitative approach, and used as a source of secondary data. Export data were displayed on the official website of the Ministry of Industry, Foreign Trade and Services (MDIC) by the “Brazilian Trade Balance: Federation Units”. The Water Footprint (PH) was based on existing literature, calculated for each product, aggregated to one year and product. Water pricing was based on charges for the use of water resources provided by the National Water Agency (ANA). Data on federal onlendings referenced by the Kandir Law and the FEX were recorded on the official website of the National Treasury Secretariat (STN). Considering the metrics, the Virtual Water Footprint, in the 2013/2017, was R$ 4,141,608,401.68, while the amounts transferred by the Federal Government for the compensation was R$ 2,192,403,831.16, that is a difference in the amount of R$ 1,949,204,570.53, thus leaving an environmental deficit, as the transfers received are less than the cost of the Virtual Water Footprint.

Keywords:
Water Footprint; soy; corn; cotton; beef

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