Nonrenewable Resource

AAA

DEFINITION of 'Nonrenewable Resource'

A resource of economic value that cannot be readily replaced by natural means on a level equal to its consumption. Most fossil fuels, such as oil, natural gas and coal are considered nonrenewable resources in that their use is not sustainable because their formation takes billions of years.

INVESTOPEDIA EXPLAINS 'Nonrenewable Resource'

Nonrenewable resource fuels are still the primary source of all the power generated in the world due to their affordability and high energy content.

Besides the environmental impact of burning fossil fuels, the economic impact of nonrenewable resources can also be very damaging. As nonrenewable resources become more scarce, the cost to obtain them will continue to rise. Eventually, the price will hit a point that end users cannot afford, forcing a move toward alternative energy sources.

RELATED TERMS
  1. Carbon Dioxide Tax

    A tax on businesses and industries that produce carbon dioxide ...
  2. Renewable Energy Certificate - ...

    A certificate that is proof that one megawatt-hour (MWh) of electricity ...
  3. Renewable Resource

    A substance of economic value that can be replaced or replenished ...
  4. Kyoto Protocol

    An international agreement that aims to reduce carbon dioxide ...
  5. Natural Capital

    A reference to the stock of natural resources, such as water ...
  6. Pigovian Tax

    A special tax that is often levied on companies that pollute ...
Related Articles
  1. Home & Auto

    Getting A Grip On The Cost Of Gas

    Feeling overwhelmed by rising oil prices? We offer some tips that will save you money.
  2. Economics

    Peak Oil: What To Do When The Wells Run Dry

    Find out how to invest and protect your investments in this slippery sector.
  3. Forex Education

    Commodity Prices And Currency Movements

    Find out which currencies are most affected by fluctuations in gold and oil prices, and improve your trading.
  4. Mutual Funds & ETFs

    Water: The Ultimate Commodity

    Opportunities to invest in this scarce resource are flowing freely - dive in!
  5. Economics

    How has fracking helped the U.S. to decrease dependence on foreign oil?

    Learn about the drilling technique referred to as fracking, and discover how this technology has significantly reduced U.S. dependence on foreign oil.
  6. Fundamental Analysis

    What is the average annual dividend yield of companies in the oil & gas drilling sector?

    Investing in oil and gas drilling companies can provide income investors a promising addition to dividend-focused portfolios due to higher than average yields.
  7. Chart Advisor

    Use These Two ETFs To Profit From A Reversal In Gold

    Traders recently have been setting their sights on gold. Buying the metal would have translated into a nearly 10% in only a few short weeks, while investing in mining-related stocks could have ...
  8. Markets

    What Is The Current Market Supply For Oil?

    Oil prices skidded by more than 10 %, sparking a sell-off in U.S. equities of 3.5 %, a Treasury rally and global headlines of growth fears and tumult.
  9. Economics

    What regulations are in place that affect fracking?

    Read about some of the regulations that impact the practice of hydraulic fracturing, which is used to increase oil and gas well output.
  10. Economics

    What causes oil prices to fluctuate?

    Discover how OPEC, demand and supply, natural disasters, production costs and political instability are some of the major causes in oil price fluctuation.

You May Also Like

Hot Definitions
  1. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  2. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  3. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  4. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  5. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  6. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
Trading Center