Denmark - Natural gas rents (% of GDP)

Natural gas rents (% of GDP) in Denmark was 0.065 as of 2019. Its highest value over the past 49 years was 0.424 in 2008, while its lowest value was 0.000 in 1970.

Definition: Natural gas rents are the difference between the value of natural gas production at world prices and total costs of production.

Source: Estimates based on sources and methods described in "The Changing Wealth of Nations: Measuring Sustainable Development in the New Millennium" (World Bank, 2011).

See also:

Year Value
1970 0.000
1971 0.000
1972 0.000
1973 0.000
1974 0.000
1975 0.000
1976 0.000
1977 0.000
1978 0.000
1979 0.000
1980 0.000
1981 0.001
1982 0.001
1983 0.002
1984 0.017
1985 0.064
1986 0.065
1987 0.039
1988 0.037
1989 0.048
1990 0.061
1991 0.063
1992 0.042
1993 0.056
1994 0.046
1995 0.043
1996 0.064
1997 0.087
1998 0.034
1999 0.027
2000 0.163
2001 0.311
2002 0.224
2003 0.189
2004 0.171
2005 0.185
2006 0.330
2007 0.281
2008 0.424
2009 0.336
2010 0.256
2011 0.294
2012 0.284
2013 0.216
2014 0.147
2015 0.118
2016 0.070
2017 0.108
2018 0.128
2019 0.065

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.

Limitations and Exceptions: This definition of economic rent differs from that used in the System of National Accounts, where rents are a form of property income, consisting of payments to landowners by a tenant for the use of the land or payments to the owners of subsoil assets by institutional units permitting them to extract subsoil deposits.

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 world price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs (including a normal return on capital). 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).

Aggregation method: Weighted average

Periodicity: Annual

Classification

Topic: Environment Indicators

Sub-Topic: Natural resources contribution to GDP