South Asia (IDA & IBRD) | 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
South Asia (IDA & IBRD)
Records
63
Source
South Asia (IDA & IBRD) | Total natural resources rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.69516267
1971 0.8243595
1972 0.8281486
1973 1.01144014
1974 1.71240498
1975 2.85994533
1976 2.93305089
1977 4.01700962
1978 3.43926908
1979 3.65560102
1980 2.55416254
1981 3.20808934
1982 3.42126933
1983 2.98722324
1984 2.76130197
1985 2.90655668
1986 2.09120876
1987 1.92662494
1988 1.80570739
1989 2.45791943
1990 2.98777096
1991 2.58017778
1992 2.35804172
1993 2.02972578
1994 1.81131859
1995 2.14168714
1996 2.11021179
1997 1.88240187
1998 1.54687221
1999 1.66408455
2000 2.17287934
2001 2.16099171
2002 2.15898628
2003 2.07731375
2004 2.83232333
2005 3.28545803
2006 3.50618681
2007 3.87222054
2008 5.85699889
2009 2.94126458
2010 3.93813198
2011 4.59370266
2012 3.5459534
2013 3.17748913
2014 2.48820409
2015 1.58494509
2016 1.5150425
2017 1.71673253
2018 1.92055905
2019 1.7464031
2020 1.53381695
2021 2.64511038
2022

South Asia (IDA & IBRD) | 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
South Asia (IDA & IBRD)
Records
63
Source