High income | 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
High income
Records
63
Source
High income | Mineral rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.21698242
1971 0.14759409
1972 0.1278638
1973 0.22228424
1974 0.29710039
1975 0.16530524
1976 0.15594237
1977 0.15021834
1978 0.08266869
1979 0.12100422
1980 0.1378013
1981 0.09892801
1982 0.07738377
1983 0.07954451
1984 0.07198324
1985 0.07072033
1986 0.04708088
1987 0.05671506
1988 0.14974872
1989 0.11536508
1990 0.085118
1991 0.0615216
1992 0.05521282
1993 0.04064697
1994 0.05193993
1995 0.06273132
1996 0.05071713
1997 0.04953501
1998 0.0360071
1999 0.03422692
2000 0.0406823
2001 0.03309592
2002 0.02903493
2003 0.03256826
2004 0.06197077
2005 0.09083288
2006 0.17850078
2007 0.22373814
2008 0.2112537
2009 0.12221818
2010 0.30377365
2011 0.37404256
2012 0.25806178
2013 0.24813288
2014 0.19662406
2015 0.10233327
2016 0.12018299
2017 0.16871305
2018 0.1558183
2019 0.12355931
2020 0.15755776
2021 0.47448151
2022

High income | 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
High income
Records
63
Source