Understanding a Marginal Abatement Cost Curve (MACC)

The document describes the Marginal Abatement Cost Curve (MACC) as a graphical tool that ranks greenhouse gas mitigation options by cost and abatement potential to support policy prioritization. It details a four-step construction process involving the calculation of abatement potential and marginal abatement cost (based on Net Present Value), and provides guidance on interpreting negative and positive costs to determine appropriate financing mechanisms. The text also warns that MACCs are static representations that ignore interactions between options, exclude societal co-benefits, and mask the distinction between upfront CAPEX and ongoing OPEX.

• A Marginal Abatement Cost Curve (MACC) is a visual tool that ranks greenhouse gas mitigation options from cheapest to costliest, representing each as a block where the width is the abatement potential and the height is the cost per unit of emissions reduced.
• The construction of a MACC involves calculating abatement potential by multiplying baseline emissions by the estimated fraction of emissions reduced, and calculating marginal abatement cost by dividing the Net Present Value (USD) by the abatement potential.
• Policymakers can use MACC cost levels to determine financing strategies: options with negative costs (net economic savings) may need regulatory or non-financial support, low-cost options may use carbon pricing or public investment, and high-cost options may require international climate finance.
• MACCs have significant analytical limitations, including the failure to account for interactions between different mitigation measures, the exclusion of non-economic co-benefits (such as health or employment), and a static nature that ignores technological progress over time.

APA

Clean Air Task Force (n.d.). Understanding a Marginal Abatement Cost Curve (MACC). https://cdn.catf.us/wp-content/uploads/2026/06/22155129/Understanding-a-Marginal-Abatement-Cost-Curve.pdf

Chicago

Clean Air Task Force. Understanding a Marginal Abatement Cost Curve (MACC). n.d. https://cdn.catf.us/wp-content/uploads/2026/06/22155129/Understanding-a-Marginal-Abatement-Cost-Curve.pdf.

Wikipedia

{{cite report |author=Clean Air Task Force |title=Understanding a Marginal Abatement Cost Curve (MACC) |url=https://cdn.catf.us/wp-content/uploads/2026/06/22155129/Understanding-a-Marginal-Abatement-Cost-Curve.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cleanairtaskforcendunderstanding, author = {{Clean Air Task Force}}, title = {{Understanding a Marginal Abatement Cost Curve (MACC)}}, institution = {Clean Air Task Force}, url = {https://cdn.catf.us/wp-content/uploads/2026/06/22155129/Understanding-a-Marginal-Abatement-Cost-Curve.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }