Korea, Rep. | 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
Republic of Korea
Records
63
Source
Korea, Rep. | Coal rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971 0.00849886
1972 0.00863416
1973 0.0124647
1974 0.16002415
1975 0.61178324
1976 0.42092332
1977 0.35148155
1978 0.21784354
1979 0.16308066
1980 0.30384796
1981 0.53244514
1982 0.5333703
1983 0.23165951
1984 0.15120506
1985 0.19322636
1986 0.08480895
1987 0.00285307
1988 0.02834202
1989 0.03285699
1990 0.02725909
1991 0.01655107
1992 0.0056585
1993 0.00029636
1994 0.00020848
1995 0.00190323
1996 0.00030072
1997 0.00013474
1998 0.00061156
1999 0.00020431
2000 0.00102037
2001 0.00749057
2002 0.00069034
2003 0.00057179
2004 0.00758358
2005 0.00379756
2006 0.00364942
2007 0.00578023
2008 0.01571033
2009 0.00491665
2010 0.00667028
2011 0.00866865
2012 0.00481878
2013 0.00283749
2014 0.00204256
2015 0.00115093
2016 0.00123764
2017 0.00136736
2018 0.00116307
2019 0.00084733
2020 0.00067518
2021 0.0010989
2022

Korea, Rep. | 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
Republic of Korea
Records
63
Source