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Measuring sustainable income from mineral extraction in Brazil

This paper provides estimates of mineral depletion in Brazil and their implication in the measurement of "sustainable income" for the mineral sector during the period 1970-1988. Two alternatives are briefly reviewed: the net price approach and the user cost approach. Estimates of sustainable income from mineral extraction are computed using both techniques, and the results obtained vary significantly between them. Estimates obtained with the user cost approach are of the same order of magnitude as conventionally measured income, with differences explained in terms of the time horizon of extraction. With the net price approach, on the other hand, large oscillations in sustainable income reflect variation in the underlying estimates of mineral reserves.

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