Estimation of green mining GDP for 40 countries

Abstract

AbstractMining is an important economic activity and a source of fiscal resources in many countries. However, its contribution to GDP does not reflect the depletion of non‐renewable natural resources and the environmental damage caused. For this reason, methodologies have emerged that allow correcting the traditional GDP through the so‐called green GDP. The main objective of this study is to use the same method, data from the same source, and economic valuation of the same components to compare the green GDP among countries and its evolution over time. Specifically, the green mining GDP (in millions of dollars for the year 2014) is estimated for 40 countries, valuing the depreciation of natural capital and the environmental damage associated with global and local air pollutants emissions. The results show that the green mining GDP represents only 24.4% of the mining GDP in all the countries studied from 2000 to 2014. However, the indicator is quite heterogeneous among countries and years analyzed. For example, 25 countries have had a positive green mining GDP in all years, and 10 countries have achieved it in recent years. Thus, it is concluded that there is ample space to develop more sustainable mining in many countries.