A Methodology for Constructing Marginal Abatement Cost Curves for Climate Action in Cities

Nadine Ibrahim and Christopher Kennedy
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Nadine Ibrahim: Faculty of Applied Science and Engineering, University of Toronto, 35 St. George Street, Toronto, ON M5S 1A4, Canada
Christopher Kennedy: Faculty of Applied Science and Engineering, University of Toronto, 35 St. George Street, Toronto, ON M5S 1A4, Canada

Energies, 2016, vol. 9, issue 4, 1-17

Abstract: As drivers of climate action, cities are taking measures to reduce greenhouse gas (GHG) emissions, which if left unabated pose a challenge to meeting long-term climate targets. The economics of climate action needs to be at the forefront of climate dialogue to prioritize investments among competing mitigation measures. A marginal abatement cost (MAC) curve is an effective visualization of climate action that initiates a technical and economic discussion of the cost-effectiveness and abatement potential of such actions among local leaders, policy makers, and climate experts. More commonly demonstrated for countries, MAC curves need to be developed for cities because of their heterogeneity, which vary in their urban activities, energy supply, infrastructure stock, and commuting patterns. The methodology for constructing bottom-up MAC curves for cities is presented for technologies that offer fuel switching and/or energy efficiencies, while considering technology lifetimes, city-specific electricity and fuel prices, and emission intensities. Resulting MAC curves are unique to every city, and chart the pathway towards low-carbon growth by prioritizing measures based on cost-effectiveness. A case study of Toronto’s climate targets demonstrates the prioritization of select technologies. Leveraging MAC curves to support climate programs enables cities to strategically invest in financing climate action and designing incentives.

Keywords: cities; marginal abatement cost; greenhouse gas emissions; cost-effectiveness; abatement potential; Toronto; buildings; transportation; waste; energy supply (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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