East Asia & Pacific | Natural gas rents (% of GDP)
Natural gas rents are the difference between the value of natural gas production at regional prices and total costs of production. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
East Asia & Pacific
Records
63
Source
East Asia & Pacific | Natural gas rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
0 1970
0.0033593 1971
0.00485489 1972
0.0077151 1973
0.04132849 1974
0.07703416 1975
0.08578709 1976
0.08739459 1977
0.10595864 1978
0.13557449 1979
0.14661061 1980
0.0545956 1981
0.01894651 1982
0.04127783 1983
0.05860494 1984
0.07664962 1985
0.09861878 1986
0.07917949 1987
0.05852451 1988
0.06529116 1989
0.08887327 1990
0.07179807 1991
0.07547309 1992
0.08478092 1993
0.0919109 1994
0.08822845 1995
0.11845813 1996
0.13710318 1997
0.11206098 1998
0.11752409 1999
0.18032478 2000
0.17995945 2001
0.16559142 2002
0.1981082 2003
0.21211103 2004
0.220137 2005
0.1943132 2006
0.17513812 2007
0.17513497 2008
0.16640851 2009
0.16835608 2010
0.16233562 2011
0.14853988 2012
0.15204842 2013
0.20666054 2014
0.23935936 2015
0.17837518 2016
0.1854388 2017
0.26370706 2018
0.27378337 2019
0.22026241 2020
0.33965966 2021
2022
East Asia & Pacific | Natural gas rents (% of GDP)
Natural gas rents are the difference between the value of natural gas production at regional prices and total costs of production. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
East Asia & Pacific
Records
63
Source