Renewable Resource


DEFINITION of 'Renewable Resource'

A substance of economic value that can be replaced or replenished in the same amount or less time as it takes to draw the supply down. Some renewable resources have essentially an endless supply, such as solar energy, wind energy and geothermal pressure, while other resources are considered renewable even though some time or effort must go into their renewal, such as wood, oxygen, leather and fish. Most precious metals are considered renewable as well; even though they are not naturally replaced, they can be recycled because they are not destroyed during their extraction and use.

BREAKING DOWN 'Renewable Resource'

Renewable resources have become a focal point of the environmental movement, both politically and economically. Energy obtained from renewable resources puts much less strain on the limited supply of fossil fuels (non-renewable resources). The problem with using renewable resources on a large scale is a cost problem and in most cases, more research is needed to make their use cost-effective.

  1. Nonrenewable Resource

    A resource of economic value that cannot be readily replaced ...
  2. Carbon Credit

    A permit that allows the holder to emit one ton of carbon dioxide. ...
  3. Peak Oil

    A hypothetical date referring to the world's peak crude oil production, ...
  4. Green Fund

    A mutual fund or other investment vehicle that will only invest ...
  5. Natural Capital

    A reference to the stock of natural resources, such as water ...
  6. Kyoto Protocol

    An international agreement that aims to reduce carbon dioxide ...
Related Articles
  1. Economics

    The 5 Countries That Produce the Most Carbon Dioxide (CO2)

    Learn about the top five countries, China, the United States, India, Russia and Japan, that are the largest contributors to carbon dioxide emissions.
  2. Economics

    The 5 Countries That Produce the Most Solar Energy

    Discover which countries are taking advantage of solar power and how they are implementing systems to use solar as a viable source of energy.
  3. Stock Analysis

    Who Will Be the Tesla of the Airline Industry?

    Explore the move toward producing electric-powered airplanes and learn what companies are in the forefront for developing the necessary technology.
  4. Investing

    Clean Or Green Technology Investing

    Innovations in energy and consumption grow as companies adopt them to reduce costs.
  5. Options & Futures

    Fueling Futures In The Energy Market

    The energy market influences every aspect of our lives, and these four options are its driving force.
  6. Options & Futures

    Top 10 Green Industries

    Put a little green in your wallet by investing in these growing areas.
  7. Options & Futures

    Spotlight On The Solar Industry

    Before you buy into the hype, learn how the industry works and how to spot the winners.
  8. Personal Finance

    Building Green For Your House And Wallet

    The earth-smart money is on these environmentally friendly housing projects.
  9. Investing Basics

    What Does In Specie Mean?

    In specie describes the distribution of an asset in its physical form instead of cash.
  10. Insurance

    What is a Force Majeure?

    A force majeure clause frees both parties in a contract from fulfilling their obligations in the event of some catastrophic or unexpected occurrence.
  1. What has been the trend for growth in nuclear power in the utilities sector?

    Although new construction of nuclear power facilities has seen a slight upturn since 2005, following a 30-year decline, the ... Read Full Answer >>
  2. How much of the United States' energy comes from oil and gas?

    As of 2014, the oil and gas sector accounted for approximately 50% of total U.S. energy needs, with approximately another ... Read Full Answer >>
  3. What are the main reasons an investor should consider an allocation to the oil and ...

    An investor should consider some asset allocation to the oil and gas sector due to the stability of the sector as an investment, ... Read Full Answer >>
  4. Is Colombia an emerging market economy?

    Colombia meets the criteria of an emerging market economy. The South American country has a much lower gross domestic product, ... Read Full Answer >>
  5. Is Mexico an emerging market economy?

    Mexico meets all the criteria of an emerging market economy. The country's gross domestic product, or GDP, per capita beats ... Read Full Answer >>
  6. Is Argentina a developed country?

    Argentina is not a developed country. It has one of the strongest economies in South America or Central America and ranks ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
  2. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  3. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  4. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  5. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
  6. Normal Profit

    An economic condition occurring when the difference between a firm’s total revenue and total cost is equal to zero.
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!