Marginal Abatement Cost, A Literature Review

Pedro Pablo  Jiménez Gómez

doi:10.55343/CogSust.58

Pedro Pablo Jiménez Gómez Faculty of Social Sciences UCAM-Catholic University of Murcia Murcia, Spain

DOI: https://doi.org/10.55343/CogSust.58

Keywords: abatement, externality, marginal cost, policy-making, MACC

Abstract

Since the 1990s, articles have widely used MAC curves to analyse the best alternatives in terms of cost-effectiveness when deciding to abate a negative externality. Most of the articles are related to CO₂ abatement as the main externality to be reduced, and the main advantages and disadvantages of the MACC tool are presented in the literature review presented here. Finally, it is determined whether the curve is a definitive method for analysing and elaborating policy and business decisions or whether the tool needs to correct the methodology to increase the scientific consensus.

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