European Union | Forest rents (% of GDP)

Forest rents are roundwood harvest times the product of regional prices and a regional rental rate. 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
European Union
Records
63
Source
European Union | Forest rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.14569725
1971 0.12787148
1972 0.11725632
1973 0.14624829
1974 0.14960157
1975 0.1337173
1976 0.13409781
1977 0.1103746
1978 0.11321804
1979 0.11988999
1980 0.12575304
1981 0.11436474
1982 0.11420424
1983 0.10405523
1984 0.09483895
1985 0.1024887
1986 0.08777859
1987 0.08389927
1988 0.08666877
1989 0.09428748
1990 0.08903745
1991 0.05717853
1992 0.0554874
1993 0.06406127
1994 0.06197738
1995 0.06701958
1996 0.06860854
1997 0.06548156
1998 0.0590442
1999 0.05765634
2000 0.06724307
2001 0.06016252
2002 0.06018015
2003 0.05728028
2004 0.047101
2005 0.04942934
2006 0.05072848
2007 0.05839264
2008 0.05537169
2009 0.0513977
2010 0.06059459
2011 0.05948149
2012 0.05897045
2013 0.05938667
2014 0.06055287
2015 0.06006193
2016 0.05872826
2017 0.05967758
2018 0.06689955
2019 0.05819475
2020 0.05588743
2021 0.0542915
2022

European Union | Forest rents (% of GDP)

Forest rents are roundwood harvest times the product of regional prices and a regional rental rate. 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
European Union
Records
63
Source