IDA blend | 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
IDA blend
Records
63
Source
IDA blend | Coal rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971 0.06752556
1972 0.06010193
1973 0.07380009
1974 0.09040949
1975 0.14446523
1976 0.13891384
1977 0.12784626
1978 0.11017083
1979 0.09135484
1980 0.09192257
1981 0.06274375
1982 0.07484981
1983 0.06198256
1984 0.06165233
1985 0.07912651
1986 0.07504573
1987 0.18282642
1988 0.20680761
1989 0.25587715
1990 0.2372806
1991 0.22776804
1992 0.20606045
1993 0.14218454
1994 0.11499779
1995 0.11077586
1996 0.08506347
1997 0.06992822
1998 0.05615747
1999 0.07713665
2000 0.07690313
2001 0.12185662
2002 0.08516627
2003 0.07292745
2004 0.15570149
2005 0.14633367
2006 0.12217818
2007 0.12706236
2008 0.25468345
2009 0.10919881
2010 0.14606189
2011 0.16700606
2012 0.09010177
2013 0.06214767
2014 0.05238593
2015 0.03694684
2016 0.03631876
2017 0.05409167
2018 0.07011855
2019 0.0577275
2020 0.04757735
2021 0.08100721
2022

IDA blend | 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
IDA blend
Records
63
Source