Public expenditure and the environmental management of Brazilian municipalities: a panel data model

Environmental expenditure can be classified as an indicator to measure the efforts of public agents with the environment. Cities and countries seek to understand the determinants of environmental spending over time. This research aims to analyze the variables that influence the environmental spending of Brazilian municipalities between the years 2012 and 2016. Thus, this research helps fill the gap on lack of longitudinal research that involves local contexts in relation to public municipal expenditures on the environment. The research method consists of the panel data model. Data were collected on the environmental expenditures of the municipalities and other variables of 4269 Brazilian municipalities, the collection generated 21,329 observations. The results showed that the municipalities of the state of Amapa had better relative expenditure averages, it was also observed that the municipalities in the Northeast region show the worst results. The municipality of Itamaraca, located in the state of Pernambuco, presented the best percentage of the country, 9.47% of the environmental expenditure in relation to total expenditure. Regarding the results of panel data, the variables revenue, population, density, GDP, and HDI presented significance in all models; the models estimated by fixed effects ensure the consistency of the parameters.