Mexico - Natural gas rents (% of GDP)

Natural gas rents (% of GDP) in Mexico was 0.072 as of 2019. Its highest value over the past 49 years was 0.288 in 2009, while its lowest value was 0.024 in 1973.

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 0.032
1971 0.033
1972 0.024
1973 0.024
1974 0.040
1975 0.074
1976 0.062
1977 0.028
1978 0.036
1979 0.140
1980 0.195
1981 0.131
1982 0.086
1983 0.267
1984 0.190
1985 0.184
1986 0.216
1987 0.144
1988 0.120
1989 0.119
1990 0.125
1991 0.101
1992 0.074
1993 0.064
1994 0.053
1995 0.076
1996 0.090
1997 0.088
1998 0.076
1999 0.079
2000 0.102
2001 0.098
2002 0.095
2003 0.104
2004 0.107
2005 0.130
2006 0.161
2007 0.168
2008 0.184
2009 0.288
2010 0.176
2011 0.232
2012 0.252
2013 0.243
2014 0.170
2015 0.109
2016 0.067
2017 0.075
2018 0.105
2019 0.072

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