United Kingdom | 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
United Kingdom of Great Britain and Northern Ireland
Records
63
Source
United Kingdom | Coal rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.05644561
1971 0.0640941
1972 0.04395824
1973 0.04784473
1974 0.07718627
1975 0.40649975
1976 0.44328978
1977 0.38011869
1978 0.21906399
1979 0.13156058
1980 0.18559188
1981 0.45457112
1982 0.5028435
1983 0.20397968
1984 0.03050867
1985 0.09449659
1986 0.02835718
1987 0.00813687
1988 0.00715262
1989 0.0076369
1990 0.04024486
1991 0.03406655
1992 0.01662287
1993 0.002923
1994 0.00267834
1995 0.00934839
1996 0.00602372
1997 0.00332664
1998 0.00258062
1999 0.00033175
2000 0.00314835
2001 0.01121162
2002 0.00441137
2003 0.00382339
2004 0.01979979
2005 0.01100544
2006 0.00973239
2007 0.01218644
2008 0.0449804
2009 0.01644056
2010 0.03010371
2011 0.03520961
2012 0.01531652
2013 0.00648468
2014 0.00525367
2015 0.00352344
2016 0.00246187
2017 0.00253441
2018 0.00252814
2019 0.00191573
2020 0.00102333
2021 0.00102274
2022

United Kingdom | 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
United Kingdom of Great Britain and Northern Ireland
Records
63
Source