Zambia | 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
Republic of Zambia
Records
63
Source
Zambia | Coal rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971 0.17210805
1972 0.20160964
1973 0.20572699
1974 0.22359524
1975 0.51985893
1976 0.47558573
1977 0.49301006
1978 0.40376079
1979 0.28146337
1980 0.36550161
1981 0.47845683
1982 0.57371453
1983 0.33068883
1984 0.35147041
1985 0.47082919
1986 0.53976613
1987 0.23969056
1988 0.2107281
1989 0.1822884
1990 0.21609548
1991 0.18707104
1992 0.21670654
1993 0.11996957
1994 0.05529501
1995 0.07122415
1996 0.05534289
1997 0.02288862
1998 0.04942837
1999 0.03407138
2000 0.04851678
2001 0.07802333
2002 0.05228637
2003 0.05343933
2004 0.06812661
2005 0.05094032
2006 0.01548373
2007 0.0043651
2008 0.00052726
2009 0.00020689
2010 0.00028466
2011 0.00031534
2012 0.02389591
2013 0.02158379
2014 0.01732261
2015 0.0161177
2016 0.03676355
2017 0.09665634
2018 0.16481881
2019 0.1155529
2020 0.13899029
2021 0.23117986
2022

Zambia | 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
Republic of Zambia
Records
63
Source