Calculating Cost‐effectiveness for Activities with Multiple Environmental Effects Using the Maximum Abatement Cost Method

Tosihiro Oka, Masanobu Ishikawa, Yoshifumi Fujii and Gjalt Huppes

Journal of Industrial Ecology, 2005, vol. 9, issue 4, 97-103

Abstract: A maximum abatement cost (MAC) method is proposed as a means of assessing preferential purchasing of products with multiple environmental effects. Using the MAC method, cost‐effectiveness of the introduction of a product with less emissions of some substances than conventional products can be assessed. In the MAC method, the reduction of a pollutant is multiplied by the MAC, the maximum unit cost of the measures taken elsewhere in society aiming to reduce the pollutant, and is added up over the relevant pollutants. The total sum, called avoidable abatement cost (AAC), is compared with the additional private cost of the product for the purchaser. When the additional private cost is smaller than the AAC, the product is regarded as relatively eco‐efficient. The MAC method is illustrated with an assessment of industrial pumps. The advantages and limitations of the method are discussed.

Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1162/108819805775248007

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:inecol:v:9:y:2005:i:4:p:97-103

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1088-1980

Access Statistics for this article

Journal of Industrial Ecology is currently edited by Reid Lifset

More articles in Journal of Industrial Ecology from Yale University
Bibliographic data for series maintained by Wiley Content Delivery ().