Marginal Abatement Cost Curve (MACC)

A Marginal Abatement Cost Curve (MACC) is an analytical tool used to assess the cost-effectiveness of various measures aimed at reducing environmental pollutants, particularly greenhouse gas emissions. By plotting the cost of abatement (on the vertical axis) against the quantity of potential emissions reductions (on the horizontal axis), a MACC provides a visual representation that helps policymakers and businesses identify the most efficient strategies for meeting environmental targets.

Typically, each bar on the MACC represents a different abatement measure, with the width of the bar indicating the volume of emissions reduction that can be achieved and the height indicating the cost per unit of emissions abated. Measures that appear below the x-axis represent cost-saving opportunities, whereas those above indicate that costs will be incurred for abatement. This curve thus assists in the prioritization of interventions based on their economic feasibility and environmental impact.

Using a Marginal Abatement Cost Curve empowers stakeholders to make data-driven decisions, aligning economic incentives with sustainability goals. It enables a clear comparison of different technologies and practices, ensuring that the journey towards a greener economy is both effective and efficient.