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)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.31655799
1971 0.26341434
1972 0.23319277
1973 0.34258485
1974 0.46477107
1975 0.29785195
1976 0.36157927
1977 0.34755316
1978 0.22987981
1979 0.31128261
1980 0.36273179
1981 0.27892188
1982 0.26329235
1983 0.23321076
1984 0.21129764
1985 0.21053536
1986 0.13246605
1987 0.14291924
1988 0.343154
1989 0.22698414
1990 0.18924865
1991 0.17096359
1992 0.15116278
1993 0.10781703
1994 0.09693915
1995 0.10507667
1996 0.09882194
1997 0.10256213
1998 0.1557021
1999 0.12147792
2000 0.10327241
2001 0.1070578
2002 0.10858352
2003 0.10722736
2004 0.16068559
2005 0.36231421
2006 0.61197874
2007 1.12837656
2008 1.18205182
2009 0.59429648
2010 1.20470937
2011 1.41386396
2012 0.62205574
2013 0.61577578
2014 0.4173255
2015 0.24824423
2016 0.26411695
2017 0.33996523
2018 0.30518171
2019 0.37733715
2020 0.35161146
2021 0.97428797
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