Latin America & Caribbean | 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
Latin America & Caribbean
Records
63
Source
Latin America & Caribbean | Coal rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
0.01096161 1971
0.00970396 1972
0.00993312 1973
0.02715314 1974
0.07166973 1975
0.07195931 1976
0.07558469 1977
0.06176157 1978
0.04536926 1979
0.03595886 1980
0.04480436 1981
0.06091242 1982
0.04341363 1983
0.03623311 1984
0.04293452 1985
0.03030385 1986
0.0106345 1987
0.01379853 1988
0.02336503 1989
0.02435257 1990
0.02015629 1991
0.01179143 1992
0.00298326 1993
0.00196326 1994
0.00823359 1995
0.00406057 1996
0.00265022 1997
0.00169588 1998
0.00052929 1999
0.00058249 2000
0.007886 2001
0.0020341 2002
0.002293 2003
0.07932649 2004
0.04921972 2005
0.05171369 2006
0.07446618 2007
0.18585707 2008
0.05517485 2009
0.09358255 2010
0.13403344 2011
0.07995265 2012
0.05819694 2013
0.04571688 2014
0.03934885 2015
0.04780213 2016
0.05652105 2017
0.06273223 2018
0.04638373 2019
0.02810284 2020
0.05363402 2021
2022
Latin America & Caribbean | 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
Latin America & Caribbean
Records
63
Source