Euro area | 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
Euro area
Records
63
Source
Euro area | Coal rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.05643135
1971 0.06419502
1972 0.04876185
1973 0.04034401
1974 0.07191248
1975 0.21962217
1976 0.23698063
1977 0.20248314
1978 0.13711658
1979 0.10696988
1980 0.13246504
1981 0.27865624
1982 0.31655574
1983 0.17328869
1984 0.12192126
1985 0.13395496
1986 0.05093992
1987 0.02204847
1988 0.01914217
1989 0.02502878
1990 0.03638725
1991 0.02983676
1992 0.01951446
1993 0.0112159
1994 0.00635621
1995 0.00941023
1996 0.00777678
1997 0.00644992
1998 0.00589895
1999 0.00292546
2000 0.00563695
2001 0.01382157
2002 0.0071231
2003 0.00522839
2004 0.02523463
2005 0.02015207
2006 0.0188849
2007 0.02069138
2008 0.05963417
2009 0.0209712
2010 0.03394892
2011 0.03908182
2012 0.01887055
2013 0.00819486
2014 0.00657734
2015 0.00500899
2016 0.00474709
2017 0.00613924
2018 0.00615777
2019 0.00318428
2020 0.00219878
2021 0.00458336
2022

Euro area | 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
Euro area
Records
63
Source