World | 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
World
Records
63
Source
World | Coal rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.06958726
1971 0.08081549
1972 0.07586182
1973 0.07628349
1974 0.16215447
1975 0.43372457
1976 0.44480418
1977 0.41674079
1978 0.33213552
1979 0.29951329
1980 0.39978506
1981 0.63529315
1982 0.7005525
1983 0.38583932
1984 0.29271507
1985 0.30337081
1986 0.16306353
1987 0.07095491
1988 0.10032492
1989 0.13633584
1990 0.16650222
1991 0.14540093
1992 0.10548013
1993 0.05551476
1994 0.04528625
1995 0.09783976
1996 0.08951112
1997 0.08368716
1998 0.07877223
1999 0.05695647
2000 0.07266035
2001 0.15206753
2002 0.09226425
2003 0.08521541
2004 0.30738894
2005 0.25539087
2006 0.27129237
2007 0.30104042
2008 0.817717
2009 0.35185056
2010 0.55240149
2011 0.73344572
2012 0.42759805
2013 0.29570881
2014 0.23701481
2015 0.15914382
2016 0.16408867
2017 0.21636768
2018 0.24446592
2019 0.18413615
2020 0.14482039
2021 0.26204081
2022

World | 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
World
Records
63
Source