Efeitos da Legislação REACH nas Economias Locais Brasileiras

Abstract

This article investigates the impact of the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) regulation on the Brazilian economy. Approved by the European Parliament in 2006, this legislation aims to achieve environmental goals and preserve public health. However, the regulatory provisions of this legal instrument have the potential to influence the dynamics of chemical imports by European countries and affect their trading partners. Through an approach that considers law enforcement as a quasi-natural experiment, we estimate the effects of the regulation on the labor market of Brazilian municipalities. To do this, we developed an exposure measure that combines the year of enactment of the law with the initial composition of the municipalities labor market. This allowed us to empirically characterize potentially exogenous variations in the chemical industry and estimate the causal impact of REACH on employment levels. Given Brazil’s relevance as an exporter of chemical to European Union members, our results offer relevant contributions about the implications of non-tariff measures implemented by developed countries on developing economies.