Finland | 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
Republic of Finland
Records
63
Source
Finland | Mineral rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.32580237
1971 0.18212324
1972 0.1782152
1973 0.37914042
1974 0.38070763
1975 0.10419746
1976 0.13520305
1977 0.10584053
1978 0.06596758
1979 0.11283052
1980 0.13636065
1981 0.07620877
1982 0.05531782
1983 0.06623223
1984 0.03510663
1985 0.0361427
1986 0.01721812
1987 0.01818341
1988 0.04462845
1989 0.09907898
1990 0.03660106
1991 0.0452918
1992 0.04185573
1993 0.02660397
1994 0.01942846
1995 0.01679043
1996 0.01405764
1997 0.02928866
1998 0.01439444
1999 0.02296699
2000 0.02294239
2001 0.00155902
2002 0.01123878
2003 0.01580811
2004 0.03440085
2005 0.04624014
2006 0.10554689
2007 0.10347399
2008 0.09730005
2009 0.08063589
2010 0.14674087
2011 0.19180029
2012 0.23932516
2013 0.12928042
2014 0.09657105
2015 0.06695634
2016 0.05839821
2017 0.11992423
2018 0.11086611
2019 0.0169942
2020 0.01430241
2021 0.10907889
2022

Finland | 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
Republic of Finland
Records
63
Source