The activity of extracting gems can be improved if public policies are adopted to expand the production chain in Brazil. In theory, the mining activity could be enhanced by increasing the financial collection of the taxes through mineral extraction aligned with the characteristics of the local economy. The present study uses a decision tree model for classifying the regional development of Brazilian states with gemstone mining activities, based on the regional data on financial compensation for mineral extraction (CFEM), gross domestic product (GDP), Human development index (HDI), environmental impact, and geo-tourism applying decision tree models. CFEM, HDP, HDI, and geo-tourism were continuous variables, and the environmental impact was discretized as ‘low,’ ‘medium,’ and ‘high.’ The results indicate that regional development is not only directly related to revenue from the financial compensation for mineral extraction. The GDP and environmental impact also influence regional development. The variables geo-tourism and HDI did not appear to exert influence on regional development. We infer that the increase in taxes would not directly benefit the local government or community from the results. Further initiatives and appropriate public policies would be necessary for planning the adequate distribution of the received resources from gem mining to improve regional growth and development.
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Article Type: Research Article
EUR J SUSTAIN DEV RES, 2021, Volume 5, Issue 4, Article No: em0172
Publication date: 20 Oct 2021
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