What is depreciation in economics? All Questions › Category: Transmission And Distribution System › What is depreciation in economics? 0 Vote Up Vote Down Chetan Shidling Staff asked 5 years ago I need short information. 1 Answers 0 Vote Up Vote Down Chetan Shidling Staff answered 5 years ago The decrease in the value of the power plant equipment and building due to constant use is known as depreciation.