A nova política nacional de recursos hídricos e a regulação dos setores de águas e energia elétrica

This paper studies the question of joint utilization of water resources in Brazil, taking into account the new legislation established for this sector. The interactions between the sectors of bulk water and electrical energy are analyzed through their regulatory agencies, and the perfect equilibrium in sub games are determined for the case in which these agencies act independently, in agreement with the new design set up for these two sectors. After being settled down some plausible hypotheses, this paper concludes that there will be a reduction in the activity of irrigation agriculture, but may or may not be a decrease of electricity power generation. Nevertheless, when the level of electricity power generation is warranted, it will be created a larger distortion situation to the society, because the economy is induced to take a less efficient allocation, which penalizes more strongly the consumption of bulk water for agriculture irrigation and public supply in benefit of the electricity power generation