What does the marginal abatement curve plot?
An typical example of a Marginal Abatement Cost Curve (MACC). MACCs plot cumulative emissions reductions from successive mitigation options (e.g. tonnes of GHGs avoided in CO2e) against the incremental cost per unit of emission reduction (e.g. $/T CO2e).
How do you interpret a marginal abatement cost curve?
How to read a Marginal Abatement Cost curve. The height of the vertical or y-axis of the graph represents the cost of each of the potential energy efficiency projects, while the width of the horizontal or x-axis represents the total GHG abatement potential for each option. The fattest block delivers the most abatement.
What shifts the marginal abatement cost curve?
A marginal abatement cost curve shifts upward or downward due to some reasons. For example, if technical progress occurs for abatement technology, the curve shifts down and the total abatement costs decrease for given amount of emission.
Why is the marginal abatement cost curve downward sloping?
The upward-sloping MB curve means that any additional ton (unit) of abatement generates smaller additional benefit than the one that preceded it. The downward-sloping MC curve means that any additional ton (unit) of abatement costs more than the one that preceded it.
What is marginal abatement costs in economics?
Abatement cost is the cost of reducing environmental negatives such as pollution. Marginal cost is an economic concept that measures the cost of an additional unit. The marginal abatement cost, in general, measures the cost of reducing one more unit of pollution.
How do you make a MACC?
To generate your MACC, you will need to collate the Marginal Abatement Cost and the total abatement for each of your projects, sorting them from lowest Marginal Abatement Cost to highest.
What is the Mckinsey curve?
A simplified global cost curve illustrates the estimated size and cost of feasible approaches to abatement by 2030. At the low end of the curve are, for the most part, measures that improve energy efficiency. These measures, such as better insulation in new buildings, thus reduce emissions by lowering demand for power.
How is the abatement cost curve obtained?
In both cases, abatement curves are generated by summarising the CO2 price resulting from runs with different strict emission limits or by summarising the emissions level resulting from different CO2 prices.
What is the relationship between marginal and total abatement costs?
units of pollution, while marginal abatement costs are the cost of abating each unit of pollution. Total damages are and total abatement costs are represented by the areas under the marginal curves. Total social costs are the sum of total damages and total abatement costs for a given level of emissions.
How do you calculate abatement?
Calculating abatement—sub-method two Calculate emissions for each site in the control and treatment group during both the measurement period and the pre-treatment period. This is done by multiplying energy consumption during the period by the relevant emissions factors (sections 53 and 54).
How is marginal abatement cost calculated?
The overall marginal abatement cost curve is the horizontal sum of the individual abatement cost curves just as the supply curve is the horizontal sum of the marginal cost curves of different firms. MC3 = 1*Q3. MC = 1*Q3.