Cost of the oil deficit for the economy of the state of Rio de Janeiro.
Oil production; Sectoral impacts; Rio de Janeiro
The sectors associated to oil activity are very important to the economy of the state of Rio de
Janeiro (ERJ) in relation to production, employment and income (Silva et al., 2016). In 2015,
the ERJ produced 67% of the oil and 40% of the brazilian gas (ANP, 2016). Despite the
excellent industry results, oil activity is sparse in the ERJ and is susceptible to external factors
such as international oil price policy, oil geopolitics, Organization of Petroleum Exporting
Countries (OPEC) regulations and norms and even wars in producer countries. Given the
external vulnerability inherent to oil activities, public policies for regional development
specific to the oil sector lose autonomy. Given the above, it is necessary to understand,
analyze and quantify the dependence of the economy of the ERJ on the oil sector. To
undertake such analysis, a hypothetical input-output extraction method proposed by
Dietzenbacher et al. (1993) for the year 2015. This methodology will make it possible to
estimate the variation in the Gross Production Value (GPV) of the ERJ resulting from the
simulation of the retraction of the Rio de Janeiro oil sector in the percentages of 5%, 7%,
12%, 17%, 19%, 23%, 31%, 53%, 71% and 99%. Through these retractions it will be possible
to build the oil deficit cost curve for the economy of the ERJ. Among the main results, it was
found that when the sector shrinks 99%, ERJ's GDP reduces 15.11%. Through these findings,
it is possible to conclude that the ERJ must implement an active industrial policy with the
objective of densifying, diversifying and modernizing the productive structure in order to
promote the state's economic development.