Description
Return rentPerUnit = waterPrice-extractionCost-deliveryCost and totalRent = rentPerUnit*quantity.
Resource rent is a residual after specified costs are subtracted from revenue or price. Its meaning depends on whether labor, capital and other opportunity costs are included and whether the accounting period and quantity basis agree.
Return rentPerUnit = waterPrice-extractionCost-deliveryCost and totalRent = rentPerUnit*quantity.
When to use this tool
Use Water Scarcity Rent One Unit Term when checking a local resource-rent residual under supplied prices and costs.
How to use the tool and how it works
- Enter waterPrice, extractionCost, deliveryCost, quantity. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read rentPerUnit, totalRent. Use the output convention below.
Require nonnegative quantity. Return rentPerUnit = waterPrice-extractionCost-deliveryCost and totalRent = rentPerUnit*quantity. Prices and costs share one currency per quantity unit, and quantity uses that denominator.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| waterPrice | Water Price | Required. Finite number. |
| extractionCost | Extraction Cost | Required. Finite number. |
| deliveryCost | Delivery Cost | Required. Finite number. |
| quantity | Quantity | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| rentPerUnit | Rent Per Unit | Required. Finite number. |
| totalRent | Total Rent | Required. Finite number. |
{
"input": {
"waterPrice": 3,
"extractionCost": 0.5,
"deliveryCost": 1,
"quantity": 1000
},
"output": {
"rentPerUnit": 1.5,
"totalRent": 1500
}
}Limitations and assumptions
- A negative rent is retained. This residual assumes the listed costs define the intended benchmark; it does not establish scarcity value, sustainable abstraction, legal access or an observed economic profit.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use a complete economic model and appropriate opportunity-cost estimates when evaluating resource scarcity, sustainable use or total sector rent.
References
Similar or alternative tools
- Fisheries Resource Rent One Landing Term
Return revenue = landedMass*pricePerMass and resourceRent = revenue-variableCost-laborOpportunityCost-capitalOpportunityCost.
- Water Charge Exempt Quantity Token Tool
Calculate water charge exempt quantity token from explicit caller-supplied inputs.