Low 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
Low income
Records
63
Source
Low income | Mineral rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
0.24846211 1970
0.18327623 1971
0.15512334 1972
0.17597051 1973
0.71288405 1974
0.42751037 1975
0.18585254 1976
0.47691403 1977
0.11366328 1978
0.1122707 1979
0.15219956 1980
0.11501544 1981
0.0962502 1982
0.10308087 1983
0.69475618 1984
0.53872033 1985
0.41532896 1986
0.52236284 1987
1.15622027 1988
1.03845645 1989
0.54390678 1990
0.05806181 1991
0.09487348 1992
0.05592582 1993
0.06270145 1994
0.03998757 1995
0.05577951 1996
0.0525922 1997
0.04898157 1998
0.04306185 1999
0.05858199 2000
0.07014214 2001
0.10134605 2002
0.04696175 2003
0.04582722 2004
0.08293426 2005
0.37514786 2006
0.26966565 2007
0.49292525 2008
0.46786986 2009
0.58343501 2010
1.64159568 2011
1.68021556 2012
1.50045428 2013
1.20524628 2014
0.73511451 2015
0.85327617 2016
1.1444005 2017
1.43893276 2018
1.11154299 2019
1.55390898 2020
6.19665315 2021
2022

Low 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
Low income
Records
63
Source