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ThE MaRgINaL ABatemEnT CoSt curVe: a sKetCHy LitTlE guIDe
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cost pEr uNit of Abatement
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each BLOcK rePREseNTS an Option FOR REDUCING EMISSIONS
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The height AND Position OF
eACH block EiTher Below or
ABOVe tHe X-Axis, SHows the
"COST Per unit of abatement"
The WIDTH OF A block SHows the Emissions
abatement potential of the option
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EACH Option ADdS To tHE
total aBatEment, wHICH IS
USUALLY SHown on a COnSISTENT
TIME BASIS LIKe EMISsONS PER
YEAR - bEcAuSE PRoJECtS
GENERAlLY reDuCE eMISSIONS
OVER DIFFERENT TIMEFRAMES..
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ALL of these OPtIONS ARE PredICteD TO Be Financial BenefiTs.
THey Save you money once you take into account all their
costs and benefits over its lifetime. Visually THey have a
"NEgative" COst Per UnIt and are positioned 'Below' the x-axis
these OPtIONS hAVE a NET Cost To AbatE emiSsIONs.
ALL things COnsidered - Financially at least - It's
EXPECted ThaT Their costs Will Outweight THeir benefits
over THe life OF thE opTiOn. Visually THey have a "Positive"
COst Per Unit and are positioned 'ABOVE' the x-axis
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PriorITisATION OPTIONs....By COST
THe chaRT puTS Options IN orDEr (left to Right) oF "COst Per UNit". So the cheApeSt options are oN the left, and as yOu move rIGht and "add" more
abATement, you ALWays COme Across the Option with the NeXT lowest Cost - this IS tHe "MARginal Cost" And puTs The "M" in Macc. So In THeory Its CHeApest
TO Start with Those options On the LEFt BEFore MOving RIght. ANything BelOW the Line (i.e. The X-AXIS) is FINAnciALLY BenEFIcIal - FOr EConomic-y and FinANCe
Types, it hAS A Positive rate of REturn ANd A Positive Net Present Value., GEnerally these Look like Pretty Good investments. THe Rest of the OPtions
have a "Cost", ANd ITs a COst you might BE williING to PAY, EsPeciAlly If you think Reducing EMissions and Saving the PLanet is Worth SOMething!!!!
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SO IS THIS WHY
We'RE DOing This...
TO MAke BETtEr
AND is thAT WhAT
I'M SEEING HERE?
but WHAT AM I
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