Ecuador | Oil rents (% of GDP)
Oil rents are the difference between the value of crude oil 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 | Oil rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
0.0208367 1970
0.03193204 1971
0.72242485 1972
2.80924506 1973
7.83255696 1974
5.85937662 1975
6.26975907 1976
4.32661744 1977
4.87918049 1978
11.10986919 1979
10.58050048 1980
7.43648309 1981
4.7513286 1982
8.67513964 1983
9.35151977 1984
9.45521761 1985
4.68377907 1986
4.99756494 1987
6.87057153 1988
9.05299642 1989
11.99110393 1990
6.18084018 1991
6.68067546 1992
6.52474732 1993
5.82667849 1994
6.4536514 1995
7.78787008 1996
6.17219684 1997
3.21214312 1998
7.86330812 1999
16.33249509 2000
9.09069291 2001
8.07370406 2002
8.39147653 2003
12.25082525 2004
16.53663965 2005
17.98687911 2006
16.51382178 2007
18.65457486 2008
8.82457083 2009
11.19414785 2010
16.01185723 2011
13.96385977 2012
12.29786051 2013
11.08263813 2014
4.19483661 2015
3.2615855 2016
4.51289937 2017
6.7591001 2018
5.52629824 2019
2.56275989 2020
6.40325083 2021
2022
Ecuador | Oil rents (% of GDP)
Oil rents are the difference between the value of crude oil 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