Impacts of the Fundão tailing dam collapse on families’ allocative decisions and own-use production

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2025-05-28

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Souza, André Portela Fernandes de

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This dissertation investigates the effects of the Fundão tailing dam collapse on ownuse production activities among the affected population. Occurring in 2015 in Mariana, Minas Gerais, the disaster is regarded as the most severe environmental catastrophe in Brazilian history. The rupture released vast amounts of mining waste, contaminating water sources, degrading soil quality, and causing extensive riverbank siltation, among other environmental damages. This study aims to assess whether and to what extent the disaster disrupted own-use production activities. To estimate the magnitude of this impact, a difference-in-differences econometric strategy adapted for cross-sectional data is employed. Additionally, the research explores how the disaster may have influenced other time allocation decisions, such as labor supply and school attendance. Finally, it seeks to identify the individual characteristics and external factors that are associated with participation in own-use production activities.

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