Euro area | 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
Euro area
Records
63
Source
Euro area | Mineral rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.02559499
1971 0.0175852
1972 0.01556166
1973 0.0363329
1974 0.04538459
1975 0.01244144
1976 0.02004622
1977 0.01607384
1978 0.00906542
1979 0.01532434
1980 0.01976088
1981 0.01225297
1982 0.01111816
1983 0.01035753
1984 0.00701803
1985 0.00588379
1986 0.00302575
1987 0.00292385
1988 0.0249596
1989 0.02877618
1990 0.00900774
1991 0.00768055
1992 0.00721645
1993 0.00417936
1994 0.00473418
1995 0.00432077
1996 0.00214865
1997 0.00275954
1998 0.00116755
1999 0.00153881
2000 0.00223501
2001 0.00076231
2002 0.00095579
2003 0.00075304
2004 0.00308851
2005 0.00493104
2006 0.01525729
2007 0.01864194
2008 0.00818986
2009 0.00389407
2010 0.01168066
2011 0.01323316
2012 0.01395518
2013 0.00874703
2014 0.00647736
2015 0.00366216
2016 0.00397914
2017 0.00823224
2018 0.00792943
2019 0.01297816
2020 0.01351674
2021 0.01643922
2022

Euro area | 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
Euro area
Records
63
Source