Marginal Abatement Cost Curves (MACCs): Important Approaches to Obtain (Firm and Sector) Greenhouse Gases (GHGs) Reduction

Ali Ahmed Ali Almihoub, Joseph M. Mula, Mohammad Mafizur Rahman


The study aims to identify appropriate methods that can help organisations to reduce energy use and emissions by using an effective concept of sustainability. In different countries, estimates of marginal abatement costs for reducing GHG emissions have been widely used. Around the world, many researchers have focused on MACCs and reported different results. This may due to different assumptions used which in turn lead to uncertainty and inaccuracy. Under these circumstances, much attention has been paid to the need for the role of MACC in providing reliable information to decision makers and various stakeholders. By reviewing the literature, this paper has analysed MACCs in terms of the role of different approaches to MACCs, representations of MACCs, MACC applications, pricing carbon, verification, and sectors analysis for energy and emissions projections. This paper concludes that MACCs should depend on actual data to provide more reliable information that may assist (firms and sectors) stockholders to determine what appropriate method for reducing emission.

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International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

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