Marginal abatement cost

Abatement live is the cost of reducing environmental negatives such(a) as pollution. Marginal live is an economic concept that measures a cost of an extra unit. The marginal abatement cost, in general, measures the cost of reducing one more ingredient of pollution. Marginal abatement costs are also called the "marginal cost" of reducing such(a) environmental negatives.

Although marginal abatement costs can be negative, such as when the low carbon option is cheaper than the business-as-usual option, marginal abatement costs often rise steeply as more pollution is reduced. In other words, it becomes more expensive [technology or infrastructure changes] to reduce pollution past apoint.

Marginal abatement costs are typically used on a marginal abatement cost curve, which shows the marginal cost of extra reductions in pollution.

Criticism

The way that marginal abatement cost curves are usually built has been criticized for lack of transparency and the poor treatment it authorises of uncertainty, inter-temporal dynamics, interactions between sectors and ancillary benefits. There is also concern regarding the biased ranking that occurs if some pointed options create negative costs.