Italy - Oil rents (% of GDP)

Oil rents (% of GDP) in Italy was 0.060 as of 2019. Its highest value over the past 49 years was 0.118 in 2012, while its lowest value was 0.001 in 1970.

Definition: Oil rents are the difference between the value of crude oil 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 0.001
1971 0.001
1972 0.002
1973 0.003
1974 0.022
1975 0.021
1976 0.024
1977 0.022
1978 0.021
1979 0.049
1980 0.050
1981 0.037
1982 0.025
1983 0.044
1984 0.048
1985 0.050
1986 0.015
1987 0.031
1988 0.026
1989 0.038
1990 0.042
1991 0.017
1992 0.018
1993 0.022
1994 0.021
1995 0.023
1996 0.031
1997 0.028
1998 0.007
1999 0.021
2000 0.048
2001 0.031
2002 0.041
2003 0.040
2004 0.046
2005 0.073
2006 0.079
2007 0.077
2008 0.089
2009 0.045
2010 0.074
2011 0.109
2012 0.118
2013 0.106
2014 0.099
2015 0.047
2016 0.025
2017 0.041
2018 0.070
2019 0.060

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