Barbados - Forest rents (% of GDP)

Forest rents (% of GDP) in Barbados was 0.010 as of 2019. Its highest value over the past 45 years was 0.014 in 2016, while its lowest value was 0.001 in 1989.

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
1974 0.008
1975 0.009
1976 0.007
1977 0.010
1978 0.009
1979 0.008
1980 0.006
1981 0.005
1982 0.011
1983 0.004
1984 0.002
1985 0.001
1986 0.001
1987 0.001
1988 0.001
1989 0.001
1990 0.003
1991 0.003
1992 0.005
1993 0.012
1994 0.010
1995 0.013
1996 0.011
1997 0.009
1998 0.007
1999 0.006
2000 0.005
2001 0.005
2002 0.005
2003 0.006
2004 0.005
2005 0.006
2006 0.007
2007 0.008
2008 0.009
2009 0.010
2010 0.014
2011 0.012
2012 0.013
2013 0.014
2014 0.014
2015 0.014
2016 0.014
2017 0.014
2018 0.014
2019 0.010

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