marginal cost of abatement

Show Summary Details

Quick Reference

The marginal loss in profits from avoiding the last unit of pollution or the marginal cost of achieving a certain pollution target given some level of output. When a pollutant has several sources, each with a different marginal abatement cost curve, the efficient amount of pollution requires equalizing the marginal cost of abatement across sectors. This can be achieved, for example, by using market-based instruments such as emissions charges and tradable permits. See also abatement cost; optimal level of pollution; pollution rights.

Subjects: Economics.

Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.