Korea - Forest rents (% of GDP)

Forest rents (% of GDP) in Korea was 0.015 as of 2019. Its highest value over the past 49 years was 0.223 in 1973, while its lowest value was 0.010 in 2005.

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 0.126
1971 0.123
1972 0.118
1973 0.223
1974 0.150
1975 0.138
1976 0.120
1977 0.110
1978 0.081
1979 0.085
1980 0.101
1981 0.072
1982 0.076
1983 0.057
1984 0.038
1985 0.044
1986 0.046
1987 0.039
1988 0.026
1989 0.022
1990 0.019
1991 0.018
1992 0.017
1993 0.016
1994 0.015
1995 0.017
1996 0.015
1997 0.013
1998 0.019
1999 0.012
2000 0.010
2001 0.011
2002 0.011
2003 0.012
2004 0.011
2005 0.010
2006 0.010
2007 0.013
2008 0.020
2009 0.023
2010 0.016
2011 0.015
2012 0.015
2013 0.016
2014 0.017
2015 0.015
2016 0.015
2017 0.018
2018 0.017
2019 0.015

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