Norway - Forest rents (% of GDP)

Forest rents (% of GDP) in Norway was 0.050 as of 2019. Its highest value over the past 49 years was 0.318 in 1974, while its lowest value was 0.030 in 2012.

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 0.292
1971 0.273
1972 0.234
1973 0.289
1974 0.318
1975 0.301
1976 0.253
1977 0.163
1978 0.209
1979 0.223
1980 0.209
1981 0.216
1982 0.190
1983 0.167
1984 0.149
1985 0.157
1986 0.160
1987 0.145
1988 0.144
1989 0.165
1990 0.164
1991 0.114
1992 0.097
1993 0.098
1994 0.083
1995 0.079
1996 0.074
1997 0.063
1998 0.064
1999 0.052
2000 0.046
2001 0.048
2002 0.050
2003 0.043
2004 0.034
2005 0.033
2006 0.034
2007 0.038
2008 0.037
2009 0.035
2010 0.039
2011 0.034
2012 0.030
2013 0.036
2014 0.042
2015 0.044
2016 0.051
2017 0.041
2018 0.053
2019 0.050

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