Peru - Coal rents (% of GDP)

Coal rents (% of GDP) in Peru was 0.002 as of 2019. Its highest value over the past 48 years was 0.012 in 1981, while its lowest value was 0.000 in 1971.

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
1971 0.000
1972 0.000
1973 0.000
1974 0.001
1975 0.002
1976 0.001
1977 0.002
1978 0.002
1979 0.001
1980 0.003
1981 0.012
1982 0.010
1983 0.008
1984 0.005
1985 0.009
1986 0.004
1987 0.000
1988 0.000
1989 0.002
1990 0.002
1991 0.001
1992 0.000
1993 0.000
1994 0.000
1995 0.000
1996 0.000
1997 0.000
1998 0.000
1999 0.000
2000 0.000
2001 0.000
2002 0.000
2003 0.000
2004 0.001
2005 0.001
2006 0.002
2007 0.003
2008 0.009
2009 0.005
2010 0.003
2011 0.006
2012 0.004
2013 0.003
2014 0.002
2015 0.002
2016 0.003
2017 0.004
2018 0.003
2019 0.002

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