Korea - Adjusted savings: natural resources depletion (% of GNI)

Adjusted savings: natural resources depletion (% of GNI) in Korea was 0.039 as of 2019. Its highest value over the past 48 years was 0.158 in 1975, while its lowest value was 0.000 in 1993.

Definition: Natural resource depletion is the sum of net forest depletion, energy depletion, and mineral depletion. Net forest depletion is unit resource rents times the excess of roundwood harvest over natural growth. Energy depletion is the ratio of the value of the stock of energy resources to the remaining reserve lifetime. It covers coal, crude oil, and natural gas. Mineral depletion is the ratio of the value of the stock of mineral resources to the remaining reserve lifetime). It covers tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate.

Source: World Bank staff estimates based on sources and methods described in "The Changing Wealth of Nations 2018: Building a Sustainable Future" (Lange et al 2018).

See also:

Year Value
1971 0.014
1972 0.015
1973 0.098
1974 0.140
1975 0.158
1976 0.108
1977 0.088
1978 0.054
1979 0.044
1980 0.084
1981 0.127
1982 0.127
1983 0.059
1984 0.040
1985 0.050
1986 0.024
1987 0.009
1988 0.033
1989 0.030
1990 0.016
1991 0.005
1992 0.003
1993 0.000
1994 0.002
1995 0.008
1996 0.006
1997 0.005
1998 0.012
1999 0.007
2000 0.006
2001 0.009
2002 0.010
2003 0.009
2004 0.003
2005 0.005
2006 0.005
2007 0.004
2008 0.006
2009 0.007
2010 0.007
2011 0.008
2012 0.009
2013 0.005
2014 0.003
2015 0.002
2016 0.001
2017 0.002
2018 0.003
2019 0.039

Development Relevance: Natural resources depletion is a critical component in the calculation of adjusted net national income. Adjusted net national income is calculated by subtracting from GNI a charge for the consumption of fixed capital (a calculation that yields net national income) and for the depletion of natural resources. The deduction for the depletion of natural resources, which covers net forest depletion, energy depletion, and mineral depletion, reflects the decline in asset values associated with the extraction and harvest of natural resources - this is analogous to depreciation of fixed assets.

Limitations and Exceptions: Net forest depletion is not the monetary value of deforestation. Roundwood and fuelwood production are different from deforestation, which represents a permanent change in land use and, thus, is not comparable. Areas logged out but intended for regeneration are not included in deforestation figures; rather, they are counted as producing timber depletion. Net forest depletion includes only timber values and does not include the loss of nontimber forest benefits and nonuse benefits. For both energy and mineral depletion, unit resource rent is calculated as (unit price - average cost). Marginal cost should be used instead of average cost in order to calculate the true opportunity cost of extraction; however, marginal cost is difficult to compute and data are not readily available. Unit prices refer to international or regional price rather than local prices. This differs from methodologies of national accounts, which may use local prices to measure energy or mineral GDP. This difference explains eventual discrepancies in the values for energy or mineral depletion, verses energy or mineral GDP.

Statistical Concept and Methodology: Natural resources depletion is the sum of net forest depletion, energy depletion, and mineral depletion: Net forest depletion is the product of unit resource rents and the excess of roundwood harvest over natural growth. In a country where incremental growth exceeds wood extraction, net forest depletion would be zero, no matter the absolute volume or value of wood extracted. Energy depletion is the ratio of the present value of energy resource rents, discounted at 4 percent, to the exhaustion time of the resource. Rent is calculated as the product of unit resource rents and the physical quantities of energy resources extracted. It covers hard and soft coal, crude oil, and natural gas. Mineral depletion is the ratio of the present value of mineral resource rents, discounted at 4 percent, to the exhaustion time of the resource. Rent is calculated as the product of unit resource rents and the physical quantities of mineral extracted. It covers tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate.

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Economic Policy & Debt Indicators

Sub-Topic: National accounts