Canada - Forest rents (% of GDP)

Forest rents (% of GDP) in Canada was 0.077 as of 2019. Its highest value over the past 49 years was 0.339 in 1979, while its lowest value was 0.060 in 2009.

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 0.210
1971 0.202
1972 0.199
1973 0.310
1974 0.254
1975 0.248
1976 0.233
1977 0.263
1978 0.298
1979 0.339
1980 0.284
1981 0.212
1982 0.192
1983 0.185
1984 0.190
1985 0.178
1986 0.214
1987 0.222
1988 0.214
1989 0.199
1990 0.185
1991 0.160
1992 0.188
1993 0.301
1994 0.277
1995 0.288
1996 0.263
1997 0.248
1998 0.174
1999 0.208
2000 0.199
2001 0.157
2002 0.165
2003 0.132
2004 0.152
2005 0.128
2006 0.112
2007 0.097
2008 0.073
2009 0.060
2010 0.071
2011 0.074
2012 0.066
2013 0.073
2014 0.077
2015 0.077
2016 0.078
2017 0.086
2018 0.062
2019 0.077

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