Euro area - Forest rents (% of GDP)

Forest rents (% of GDP) in Euro area was 0.041 as of 2019. Its highest value over the past 49 years was 0.116 in 1973, while its lowest value was 0.033 in 2004.

Definition: Forest rents are roundwood harvest times the product of average prices and a region-specific rental rate.

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 0.114
1971 0.098
1972 0.093
1973 0.116
1974 0.115
1975 0.103
1976 0.107
1977 0.093
1978 0.093
1979 0.099
1980 0.104
1981 0.092
1982 0.091
1983 0.082
1984 0.075
1985 0.082
1986 0.070
1987 0.060
1988 0.064
1989 0.073
1990 0.070
1991 0.039
1992 0.036
1993 0.042
1994 0.043
1995 0.048
1996 0.050
1997 0.046
1998 0.043
1999 0.041
2000 0.050
2001 0.044
2002 0.044
2003 0.042
2004 0.033
2005 0.033
2006 0.037
2007 0.043
2008 0.041
2009 0.038
2010 0.045
2011 0.043
2012 0.042
2013 0.043
2014 0.045
2015 0.044
2016 0.045
2017 0.041
2018 0.046
2019 0.041

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