Definition: A non-renewable resource is a natural resource that cannot be replenished by nature as quick as it is consumed. It is an element whose reserves will be depleted at some point and it will not be possible to get any more of it in the mid-term.
What Does Non-Renewable Resource Mean?
The earth contains renewable and nonrenewable resources, and they are classified depending on nature’s capability to replenish the sources where they are found. Some of these non renewables are fossil fuels like oil, coal and natural gas or minerals like gold, silver and iron. Many companies exploit nonrenewable resources causing countries impose specific taxes to such businesses, since the non renewable nature of these resources makes them very valuable for the country and these special tariffs ensure the nation benefits from the operation.
There is a global trend to pursue the development of energy sources that come from renewable resources or natural elements like wind or water. The reason why this is being done is because the rate at which non renewable resources are being exploited is too high and they will be depleted sooner than it was expected, which means the world needs to identify other sustainable sources to get its energy from.
Example
GasLon Co. is a company that distributes natural gas for domestic purposes to four states. They are associated with a local branch of a big oil company, since gas comes from petroleum drilling activities. The company started by building the pipeline and storing infrastructure to get the gas from the drilling site to its own facilities where it is treated, controlled and commercialized through a pipeline system that distributes the resource adequately.
All states served by GasLon impose a special tax on natural gas related businesses. This tariff has the purpose to provide additional resources for the states to develop infrastructure projects.
