Ecuador | 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
Republic of Ecuador
Records
63
Source
Ecuador | Natural gas rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971 0
1972 0
1973 0
1974 0
1975 0
1976 0
1977 0
1978 0
1979 0
1980 0.01013752
1981 0.00321079
1982 0.0007802
1983 0.00738261
1984 0.0111428
1985 0.01074284
1986 0.00756102
1987 0.00390463
1988 0.00540275
1989 0.00619582
1990 0.0102983
1991 0.00603712
1992 0.00556593
1993 0.00658416
1994 0.00475142
1995 0.00460555
1996 0.00461365
1997 0.00342291
1998 0.00264647
1999 0.00547743
2000 0.01492743
2001 0.01256258
2002 0.00525597
2003 0.00528724
2004 0.00534535
2005 0.01373649
2006 0.01848154
2007 0.02000875
2008 0.01742784
2009 0.02150406
2010 0.01524118
2011 0.02190146
2012 0.04482726
2013 0.04504697
2014 0.04267159
2015 0.01902914
2016 0.00893255
2017 0.00999934
2018 0.01832133
2019 0.01745519
2020 0.00867627
2021 0.01360267
2022

Ecuador | 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
Republic of Ecuador
Records
63
Source