Latin America & Caribbean (excluding high income) | 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 (excluding high income)
Records
63
Source
Latin America & Caribbean (excluding high income) | Coal rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
0.01572193 1971
0.01358536 1972
0.01420201 1973
0.03496837 1974
0.08109716 1975
0.08567664 1976
0.09402363 1977
0.0778037 1978
0.05828335 1979
0.04428725 1980
0.05242765 1981
0.07736542 1982
0.05312271 1983
0.04322966 1984
0.05146462 1985
0.03768281 1986
0.01371251 1987
0.01659026 1988
0.02413515 1989
0.02503589 1990
0.02069499 1991
0.01245721 1992
0.00336662 1993
0.00220055 1994
0.00845254 1995
0.00447561 1996
0.00300733 1997
0.00193187 1998
0.00061369 1999
0.00067425 2000
0.00840301 2001
0.00236953 2002
0.00266575 2003
0.07617853 2004
0.04895994 2005
0.05271939 2006
0.07620999 2007
0.19719624 2008
0.06161196 2009
0.10402823 2010
0.1480411 2011
0.09078904 2012
0.06547294 2013
0.05197096 2014
0.04263764 2015
0.05234227 2016
0.0617592 2017
0.06915195 2018
0.05135413 2019
0.03139464 2020
0.06089945 2021
2022
Latin America & Caribbean (excluding high income) | 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 (excluding high income)
Records
63
Source