Latin America & Caribbean | 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
Records
63
Source
Latin America & Caribbean | Natural gas rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
0.0108201 1970
0.011943 1971
0.01306181 1972
0.01158834 1973
0.06970454 1974
0.11728473 1975
0.10949873 1976
0.00822781 1977
0.01881328 1978
0.11720223 1979
0.22899123 1980
0.12186066 1981
0.03264989 1982
0.18595619 1983
0.22732474 1984
0.21836318 1985
0.18674882 1986
0.13172451 1987
0.10844928 1988
0.08612205 1989
0.09495071 1990
0.07494823 1991
0.06202049 1992
0.07033931 1993
0.05594832 1994
0.04768978 1995
0.05002885 1996
0.04809592 1997
0.03914755 1998
0.06728592 1999
0.11803179 2000
0.12000139 2001
0.11200239 2002
0.09203128 2003
0.08447642 2004
0.13704158 2005
0.17745149 2006
0.18825553 2007
0.18187221 2008
0.21799219 2009
0.12500519 2010
0.24880469 2011
0.26603443 2012
0.28833881 2013
0.25367306 2014
0.13858832 2015
0.05881885 2016
0.06868359 2017
0.16487144 2018
0.1778426 2019
0.10414423 2020
0.14483349 2021
2022
Latin America & Caribbean | 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
Records
63
Source