MEASURING SUSTAINABLE INCOME FROM MINERAL EXTRACTION IN BRAZIL

This paper provides estimates of mineral depletion in Brazil, and thei r implication for the measurement of sustainable income for the minera l sector, during the period 1970-88. Two alternative approaches are br iefly reviewed: the net price approach and the user cost approach. Est imates of sustainable income from mineral extraction in Brazil are com puted using both techniques, and the results obtained vary significant ly between them. Estimates obtained with the user cost approach are of the same order of magnitude as conventionally measured income, with d ifferences explained in terms of the time horizon of extraction. With the net price approach, on the other hand, large oscillations in susta inable income reflect variation in the underlying estimates of mineral reserves.