South Asia (IDA & IBRD) | 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
South Asia (IDA & IBRD)
Records
63
Source
South Asia (IDA & IBRD) | Coal rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971 0.16384421
1972 0.18818823
1973 0.20614915
1974 0.3773607
1975 0.87137331
1976 0.96685268
1977 0.85902672
1978 0.6693052
1979 0.60500773
1980 0.73114174
1981 1.11807543
1982 1.23455319
1983 0.79101691
1984 0.69496138
1985 0.70277783
1986 0.54479786
1987 0.33759672
1988 0.42453622
1989 0.55254409
1990 0.61665821
1991 0.73991002
1992 0.64137699
1993 0.4574363
1994 0.44235731
1995 0.66144949
1996 0.59030935
1997 0.50954641
1998 0.40633914
1999 0.28686676
2000 0.3636932
2001 0.59940077
2002 0.42655265
2003 0.43468147
2004 1.03774673
2005 0.84964212
2006 0.85885314
2007 0.95446404
2008 2.21265623
2009 1.10449975
2010 1.32786121
2011 1.61328036
2012 1.17642634
2013 0.95162638
2014 0.77446302
2015 0.59717241
2016 0.62597698
2017 0.73763417
2018 0.89986335
2019 0.65416756
2020 0.54274525
2021 1.00464757
2022

South Asia (IDA & IBRD) | 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
South Asia (IDA & IBRD)
Records
63
Source