Latin America & Caribbean (excluding high income) | 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
Latin America & Caribbean (excluding high income)
Records
63
Source
Latin America & Caribbean (excluding high income) | Natural gas rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.00946323
1971 0.00964418
1972 0.01018445
1973 0.00926887
1974 0.05584323
1975 0.0886036
1976 0.08097603
1977 0.00622998
1978 0.01506624
1979 0.09837354
1980 0.20548263
1981 0.1101599
1982 0.03036203
1983 0.17412461
1984 0.20383916
1985 0.19097854
1986 0.1693065
1987 0.11656547
1988 0.09836665
1989 0.06835157
1990 0.07103544
1991 0.05633194
1992 0.04695888
1993 0.0530241
1994 0.04114727
1995 0.0354098
1996 0.03640406
1997 0.03566382
1998 0.02993147
1999 0.05457602
2000 0.09472014
2001 0.09794807
2002 0.08831063
2003 0.07133267
2004 0.06731629
2005 0.11012832
2006 0.14136644
2007 0.14903755
2008 0.14719892
2009 0.17997836
2010 0.09991987
2011 0.19644661
2012 0.21477447
2013 0.23267746
2014 0.21223585
2015 0.12274647
2016 0.05349568
2017 0.06146658
2018 0.14569825
2019 0.15674115
2020 0.09421076
2021 0.13541951
2022

Latin America & Caribbean (excluding high income) | 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
Latin America & Caribbean (excluding high income)
Records
63
Source