Albania - Coal rents (% of GDP)

Coal rents (% of GDP) in Albania was 0.024 as of 2019. Its highest value over the past 35 years was 0.557 in 1985, while its lowest value was 0.000 in 2014.

Definition: Coal rents are the difference between the value of both hard and soft coal production at world prices and their total costs of production.

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
1984 0.368
1985 0.557
1986 0.152
1987 0.048
1988 0.077
1989 0.091
1990 0.225
1991 0.204
1992 0.068
1993 0.002
1994 0.002
1995 0.003
1996 0.002
1997 0.000
1998 0.001
1999 0.000
2000 0.001
2001 0.001
2002 0.000
2003 0.001
2004 0.007
2005 0.003
2006 0.003
2007 0.004
2008 0.014
2009 0.001
2010 0.001
2011 0.001
2012 0.000
2013 0.000
2014 0.000
2015 0.006
2016 0.000
2017 0.016
2018 0.034
2019 0.024

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