Europe & Central Asia | 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
Europe & Central Asia
Records
63
Source
Europe & Central Asia | Natural gas rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.02248029
1971 0.03272172
1972 0.04817357
1973 0.03581291
1974 0.11458925
1975 0.14808376
1976 0.15790656
1977 0.13451195
1978 0.12233446
1979 0.17801584
1980 0.20377571
1981 0.14659346
1982 0.06566903
1983 0.12205481
1984 0.1291065
1985 0.11762279
1986 0.08578585
1987 0.06523708
1988 0.1189724
1989 0.12724948
1990 0.17454545
1991 0.12082376
1992 0.05811009
1993 0.14155309
1994 0.12645714
1995 0.20119291
1996 0.19207692
1997 0.20856724
1998 0.02664718
1999 0.02686822
2000 0.19840128
2001 0.4197129
2002 0.29649777
2003 0.27460937
2004 0.21357757
2005 0.17268513
2006 0.35948359
2007 0.31552942
2008 0.53640953
2009 0.38555002
2010 0.36628374
2011 0.5191039
2012 0.55564654
2013 0.5240588
2014 0.35458661
2015 0.29736518
2016 0.18026122
2017 0.2452099
2018 0.37923978
2019 0.2660511
2020 0.1174435
2021 0.63212181
2022

Europe & Central Asia | 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
Europe & Central Asia
Records
63
Source