Latin America & the Caribbean (IDA & IBRD countries) | 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 & the Caribbean (IDA & IBRD countries)
Records
63
Source
Latin America & the Caribbean (IDA & IBRD countries) | Natural gas rents (% of GDP)
year value
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.0108201
1971 0.01286605
1972 0.01412607
1973 0.01251609
1974 0.07480987
1975 0.1263618
1976 0.11776186
1977 0.00882789
1978 0.0202766
1979 0.12512722
1980 0.24945275
1981 0.13141625
1982 0.03582805
1983 0.20200243
1984 0.24758684
1985 0.23912444
1986 0.20759771
1987 0.14660648
1988 0.12047065
1989 0.09162476
1990 0.10045857
1991 0.07885484
1992 0.0649988
1993 0.07330255
1994 0.0583376
1995 0.04972868
1996 0.05194397
1997 0.04990142
1998 0.04070159
1999 0.07034953
2000 0.12313846
2001 0.1258352
2002 0.11868947
2003 0.09769731
2004 0.08925667
2005 0.14380843
2006 0.18533508
2007 0.1955432
2008 0.18805273
2009 0.22614949
2010 0.12877071
2011 0.25578486
2012 0.27367374
2013 0.29658075
2014 0.26077176
2015 0.14379131
2016 0.06117573
2017 0.07121966
2018 0.17125083
2019 0.18518789
2020 0.10925495
2021 0.14866189
2022

Latin America & the Caribbean (IDA & IBRD countries) | 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 & the Caribbean (IDA & IBRD countries)
Records
63
Source