Africa Eastern and Southern | Coal rents (% of GDP)
Coal rents are the difference between the value of both hard and soft coal production at world prices and their total costs of production. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
Africa Eastern and Southern
Records
63
Source
Africa Eastern and Southern | Coal rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
0.76394807 1971
0.77272648 1972
0.75888213 1973
1.1274555 1974
2.21467583 1975
2.54992247 1976
2.62526305 1977
2.35673195 1978
2.26393597 1979
2.13312067 1980
3.09162142 1981
3.69121115 1982
2.32940046 1983
2.12301734 1984
2.95490066 1985
2.10590059 1986
1.26134387 1987
1.4130594 1988
1.53858888 1989
1.39857788 1990
1.30671145 1991
1.26826143 1992
1.00107447 1993
1.04593301 1994
1.3865697 1995
1.23572567 1996
1.01422122 1997
0.80462116 1998
0.54792627 1999
0.72030759 2000
1.35841595 2001
0.86032878 2002
0.79179433 2003
1.96145531 2004
1.36699016 2005
1.32497671 2006
1.64000461 2007
3.3660522 2008
1.10960636 2009
1.71332122 2010
1.9591537 2011
1.34978069 2012
1.06991718 2013
0.7915008 2014
0.59639886 2015
0.69777684 2016
0.85068161 2017
1.03561097 2018
0.75233526 2019
0.63491016 2020
1.03247462 2021
2022
Africa Eastern and Southern | Coal rents (% of GDP)
Coal rents are the difference between the value of both hard and soft coal production at world prices and their total costs of production. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
Africa Eastern and Southern
Records
63
Source