European Union | Total natural resources rents (% of GDP)

Total natural resources rents are the sum of oil rents, natural gas rents, coal rents (hard and soft), mineral rents, and forest rents. 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 | Total natural resources rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.2523118
1971 0.24467215
1972 0.23180048
1973 0.26932767
1974 0.42413401
1975 0.52508494
1976 0.56039667
1977 0.47006844
1978 0.38040148
1979 0.43907304
1980 0.5123525
1981 0.57921676
1982 0.52964879
1983 0.45516197
1984 0.40358121
1985 0.42001128
1986 0.23084542
1987 0.20038478
1988 0.21913077
1989 0.25468535
1990 0.26883192
1991 0.18084749
1992 0.14563487
1993 0.15600954
1994 0.14110143
1995 0.17139618
1996 0.17221298
1997 0.17012036
1998 0.0909798
1999 0.10189501
2000 0.19741004
2001 0.23165571
2002 0.18935812
2003 0.17169274
2004 0.21078788
2005 0.22062772
2006 0.28415412
2007 0.28211609
2008 0.40832776
2009 0.236268
2010 0.42216112
2011 0.54142258
2012 0.43808378
2013 0.38240938
2014 0.32633959
2015 0.19150006
2016 0.19445643
2017 0.26624459
2018 0.2829209
2019 0.15872977
2020 0.12016049
2021 0.22885819
2022

European Union | Total natural resources rents (% of GDP)

Total natural resources rents are the sum of oil rents, natural gas rents, coal rents (hard and soft), mineral rents, and forest rents. 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