Marginal abatement cost

Power companies may employ marginal abatement cost curves to guide their decisions about long-term capital investment strategies to select among a variety of efficiency and generation options.

[2] The way that marginal abatement cost curves are usually built has been criticized for lack of transparency and the poor treatment it makes of uncertainty, inter-temporal dynamics, interactions between sectors and ancillary benefits.

Bloomberg New Energy Finance[9] and McKinsey & Company[10] have produced economy wide analyses on greenhouse gas emissions reductions for the United States.

ICF International[11] produced a California specific curve following the Global Warming Solutions Act of 2006 legislation as have Sweeney and Weyant.

[13] The US Environmental Protection Agency has done work on a marginal abatement cost curve for non-carbon dioxide emissions such as methane, N2O, and hydrofluorocarbons.