Abatement cost

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Updated: Aug 20, 2021

The cost of securing a reduction in pollution. The abatement cost can be quoted as a cost per unit or the total cost of achieving a given target. The marginal abatement cost should be equated to the marginal benefit to determine the efficient reduction in pollution. The concept of abatement cost applies to pollution caused by the production activities of firms and the consumption activities of consumers.

Reference: Oxford Press Dictonary of Economics, 5th edt.



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James Knight
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James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.