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What Is the Meaning of Depletable Resources?
Depletable Resources means non renewable resource in general terms. In Economic theory, it can be used to refer to fine resources that can easily run out. Wood, coal, and oil are some of the common depletable resources.
Some of the depletable resources tend to be potentially renewable. However, if consumed faster than the pace of replenishment, these can turn into depletable resources. For instance, fishing was sustainable in the North Sea for many years. But the stocks of fish began to drop with commercial fishing activities in the area. Thus, fishes turned into a depletable resource.
Similarly, a lot of natural resources – such as water – are becoming depletable resources due to Global Warming. At one time, water was available aplenty. Today, it is often in low supply in many areas.
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What is its Significance?
Depletable Resources is a challenging and important concept from the economic perspective. It can be a challenge for an economist to study the depletion of resources and its effect on the economy. A look at the growing population is enough to make one understand that it is important to manage depletable resources with care, and absolute control.
It is important to grow and use such resources in a responsible manner, without causing much damage to the environment. Higher production of these resources is a necessity for a growing world population. Mismanagement of depletable resources, such as energy, can throw the market off balance and make the economy spiral out of control. Within a particular firm, even money can be a depletable resource.
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