Marginal Abatement Cost Curve (MACC) Chart

A Marginal Abatement Cost Curve (MACC) is a graphical representation that shows the cost and potential of different measures to reduce emissions of pollutants such as greenhouse gases. Each bar on the MACC represents a specific abatement measure, with the width of the bar indicating the potential reduction in emissions (usually measured in tons of CO₂ equivalent) and the height indicating the cost per unit of emissions reduced (typically in dollars per ton of CO₂ equivalent).

How to Read a MACC Chart

1. X-Axis (Horizontal Axis): This represents the total potential of emission reductions. Each segment (or bar) along the x-axis corresponds to a specific abatement measure, and the width of the segment represents the amount of emissions that can be reduced by that measure.

2. Y-Axis (Vertical Axis): This represents the marginal cost of abatement. Each segment's height indicates the cost per ton of CO₂ equivalent reduced for that specific measure. Costs can be negative, indicating a measure that saves money while reducing emissions (e.g., energy efficiency improvements).

3. Bars: Each bar on the MACC represents a different abatement measure. The position of the bar along the x-axis shows the cumulative emissions reduction potential up to and including that measure. The height of the bar indicates the cost per ton of CO₂ reduced.

4. Negative Costs: Measures with negative costs are those that save money (e.g., energy efficiency improvements). They appear below the x-axis.

Uses of a MACC Chart

1. Policy Planning: MACC charts help policymakers identify and prioritize cost-effective measures for reducing emissions.

2. Investment Decisions: Businesses and investors can use MACC charts to identify profitable opportunities for reducing emissions.

3. Cost-Benefit Analysis: They provide a clear visualization of the trade-offs between the costs and benefits of different abatement measures.

4. Strategic Planning: Organizations can use MACC charts to develop strategies for meeting emissions reduction targets.

5. Public Communication: They can be used to communicate the economic impacts of different abatement measures to the public and stakeholders.

By showing the cost-effectiveness of various abatement options, MACC charts help in making informed decisions about how to achieve emissions reduction targets in the most economical way.