Japan - Forest rents (% of GDP)

Forest rents (% of GDP) in Japan was 0.023 as of 2019. Its highest value over the past 49 years was 0.148 in 1973, while its lowest value was 0.006 in 2004.

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 0.142
1971 0.147
1972 0.121
1973 0.148
1974 0.117
1975 0.111
1976 0.110
1977 0.076
1978 0.068
1979 0.094
1980 0.102
1981 0.070
1982 0.095
1983 0.071
1984 0.051
1985 0.060
1986 0.038
1987 0.029
1988 0.024
1989 0.028
1990 0.027
1991 0.022
1992 0.018
1993 0.018
1994 0.014
1995 0.013
1996 0.014
1997 0.013
1998 0.011
1999 0.009
2000 0.008
2001 0.007
2002 0.008
2003 0.008
2004 0.006
2005 0.008
2006 0.009
2007 0.012
2008 0.012
2009 0.010
2010 0.010
2011 0.009
2012 0.010
2013 0.013
2014 0.016
2015 0.018
2016 0.020
2017 0.029
2018 0.025
2019 0.023

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