Caribbean small states - Forest rents (% of GDP)

Forest rents (% of GDP) in Caribbean small states was 0.389 as of 2019. Its highest value over the past 49 years was 0.905 in 1973, while its lowest value was 0.213 in 2002.

Definition: Forest rents are roundwood harvest times the product of average prices and a region-specific rental rate.

Source: Estimates based on sources and methods described in "The Changing Wealth of Nations: Measuring Sustainable Development in the New Millennium" (World Bank, 2011).

See also:

Year Value
1970 0.729
1971 0.657
1972 0.644
1973 0.905
1974 0.678
1975 0.722
1976 0.603
1977 0.663
1978 0.685
1979 0.853
1980 0.745
1981 0.601
1982 0.848
1983 0.445
1984 0.285
1985 0.280
1986 0.350
1987 0.389
1988 0.366
1989 0.389
1990 0.460
1991 0.486
1992 0.509
1993 0.514
1994 0.580
1995 0.739
1996 0.622
1997 0.541
1998 0.372
1999 0.318
2000 0.224
2001 0.229
2002 0.213
2003 0.231
2004 0.231
2005 0.223
2006 0.304
2007 0.307
2008 0.289
2009 0.338
2010 0.526
2011 0.446
2012 0.438
2013 0.494
2014 0.505
2015 0.464
2016 0.522
2017 0.536
2018 0.504
2019 0.389

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.

Limitations and Exceptions: This definition of economic rent differs from that used in the System of National Accounts, where rents are a form of property income, consisting of payments to landowners by a tenant for the use of the land or payments to the owners of subsoil assets by institutional units permitting them to extract subsoil deposits.

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 world price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs (including a normal return on capital). 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).

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Environment Indicators

Sub-Topic: Natural resources contribution to GDP