O PRINCÍPIO DOS USOS MÚLTIPLOS DOS RECURSOS HÍDRICOS E O CUSTO SOCIAL DA ENERGIA ELÉTRICA NO BRASIL

Abstract

This paper examines the evolution of Brazilian electricity sector as the first and large user of water resources, and calls attention to the fact that, despite the water utilization for electrical power generation be considered as a consumptive use of water resources, hydroelectric generation brings upon sustainability costs to hydrographic basin systems, because it establishes technical restrictions (the need to guarantee adequate upstream water flow, evaporation losses of reservoirs, and changes of downstream water flow), which are not considered by the sector through its electricity pricing mechanism. The fact that the electricity sector does not take into account these social costs, implies that electricity price is being undervalued by the market, generating in this way an inefficient allocation of resources in the Brazilian economy, by inducing economic agents to use electricity more intensively than its social optimum level, with negative effects to the society as a whole.