Europe & Central Asia | 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
Europe & Central Asia
Records
63
Source
Europe & Central Asia | Coal rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.05228233
1971 0.05971756
1972 0.04478679
1973 0.0387466
1974 0.06785219
1975 0.22646754
1976 0.24211114
1977 0.20760107
1978 0.13808994
1979 0.10275398
1980 0.12987253
1981 0.28294023
1982 0.32047068
1983 0.16451386
1984 0.09892999
1985 0.11826997
1986 0.043978
1987 0.01897483
1988 0.01665748
1989 0.02156919
1990 0.11796921
1991 0.0958224
1992 0.06640536
1993 0.03896175
1994 0.02306542
1995 0.03222033
1996 0.02670946
1997 0.02273345
1998 0.02101116
1999 0.01108316
2000 0.02086721
2001 0.05121908
2002 0.02914554
2003 0.02259646
2004 0.09018594
2005 0.08116662
2006 0.08083325
2007 0.07708867
2008 0.26274712
2009 0.10597028
2010 0.16094894
2011 0.18629131
2012 0.0989805
2013 0.04529863
2014 0.03857228
2015 0.03726001
2016 0.04301103
2017 0.0576895
2018 0.06403242
2019 0.05078326
2020 0.03821122
2021 0.06824759
2022

Europe & Central Asia | 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
Europe & Central Asia
Records
63
Source