Africa Western and Central | 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 Western and Central
Records
63
Source
Africa Western and Central | Coal rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971 0.00449343
1972 0.00725199
1973 0.00676383
1974 0.00754306
1975 0.00950076
1976 0.00471315
1977 0.00696956
1978 0.00610743
1979 0.00395614
1980 0.07970699
1981 0.05086653
1982 0.06593461
1983 0.09895004
1984 0.09776309
1985 0.08480535
1986 0.06599426
1987 0.17789593
1988 0.18115534
1989 0.24491516
1990 0.20755091
1991 0.19261844
1992 0.1787322
1993 0.13958064
1994 0.1130838
1995 0.09173608
1996 0.07535656
1997 0.06929208
1998 0.05712738
1999 0.08899983
2000 0.09191092
2001 0.12348901
2002 0.09480812
2003 0.07696331
2004 0.11725388
2005 0.13870999
2006 0.12074195
2007 0.09844663
2008 0.22920938
2009 0.11605908
2010 0.14466423
2011 0.17055938
2012 0.08664215
2013 0.05378777
2014 0.03753767
2015 0.0284396
2016 0.03418255
2017 0.04702173
2018 0.05159987
2019 0.04298454
2020 0.03149497
2021 0.0488434
2022

Africa Western and Central | 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 Western and Central
Records
63
Source