scarcity rent

In economics, "scarcity rent" refers to the income earned from a factor of production that exceeds the minimum amount needed to secure its services. This concept is closely tied to the idea of scarcity, where limited resources command higher returns.1

Classical economists viewed rent primarily as income from land ownership, arising from differences in fertility or intensive use. Modern economics broadens this to include any factor of production. For instance, a highly sought-after singer might earn "scarcity rent" because their unique talent is in limited supply, and their income surpasses what they could earn in any other profession. This contrasts with "scarcity economics," a theory that suggests limiting output to ensure profits.23