East Asia & Pacific | Mineral rents (% of GDP)
Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. 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
East Asia & Pacific
Records
63
Source
East Asia & Pacific | Mineral rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
0.31655799 1970
0.26341434 1971
0.23319277 1972
0.34258485 1973
0.46477107 1974
0.29785195 1975
0.36157927 1976
0.34755316 1977
0.22987981 1978
0.31128261 1979
0.36273179 1980
0.27892188 1981
0.26329235 1982
0.23321076 1983
0.21129764 1984
0.21053536 1985
0.13246605 1986
0.14291924 1987
0.343154 1988
0.22698414 1989
0.18924865 1990
0.17096359 1991
0.15116278 1992
0.10781703 1993
0.09693915 1994
0.10507667 1995
0.09882194 1996
0.10256213 1997
0.1557021 1998
0.12147792 1999
0.10327241 2000
0.1070578 2001
0.10858352 2002
0.10722736 2003
0.16068559 2004
0.36231421 2005
0.61197874 2006
1.12837656 2007
1.18205182 2008
0.59429648 2009
1.20470937 2010
1.41386396 2011
0.62205574 2012
0.61577578 2013
0.4173255 2014
0.24824423 2015
0.26411695 2016
0.33996523 2017
0.30518171 2018
0.37733715 2019
0.35161146 2020
0.97428797 2021
2022
East Asia & Pacific | Mineral rents (% of GDP)
Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. 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
East Asia & Pacific
Records
63
Source