Japan - Oil rents (% of GDP)

Oil rents (% of GDP) in Japan was 0.001 as of 2019. Its highest value over the past 49 years was 0.091 in 1979, while its lowest value was 0.001 in 1998.

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 0.002
1971 0.005
1972 0.008
1973 0.013
1974 0.069
1975 0.067
1976 0.065
1977 0.058
1978 0.040
1979 0.091
1980 0.010
1981 0.005
1982 0.005
1983 0.005
1984 0.004
1985 0.005
1986 0.002
1987 0.002
1988 0.001
1989 0.002
1990 0.002
1991 0.002
1992 0.002
1993 0.001
1994 0.001
1995 0.001
1996 0.001
1997 0.001
1998 0.001
1999 0.001
2000 0.001
2001 0.001
2002 0.001
2003 0.001
2004 0.001
2005 0.002
2006 0.002
2007 0.002
2008 0.003
2009 0.001
2010 0.002
2011 0.002
2012 0.002
2013 0.002
2014 0.002
2015 0.001
2016 0.001
2017 0.002
2018 0.001
2019 0.001

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