New paper: Using Marginal Abatement Cost Curves to realize the Economic Appraisal of Climate Smart Agriculture Policy Options, EASYPol Module 116
Analytical tool using EX-ACT Software for Ex-ante Carbon-Balance Appraisal of Investment Projects
Authors: Louis Bockel, Madeleine Jönsson, Pierre Sutter, Ophélie Touchemoulin, reviewed by Benjamin Henderson and Michael MacLeod
The objective of this paper is to provide good practice guidance for the construction of Marginal Abatement Cost Curves (MACC) in the AFOLU (Agriculture, Forestry, Land Use) sector, in general and by using the EX-ACT tool.
The paper is a general guideline to narrow down subjectivities and provide a common understanding of important aspects to be taken into account while establishing a MACC analysis in the agricultural sector.
What is MACC?
Marginal Abatement Cost Curves (MACC) have been developed over these past twenty years to explore which options deliver the most economically efficient reductions in GHG within agriculture.
MACC also enables the comparison of the cost-effectiveness of mitigation options between different sectors (e.g. agriculture, power, transport, industry and domestic energy consumption). MACC has become a useful tool for policy makers to prioritize mitigation options.
The first part of these guidelines explains the methodology in order to assess the cost-effectiveness and the mitigation potential of technical practices in agriculture. It also underlines the limits of the MACC approach. The second part looks at a practical MACC analysis example, using the EX-ACT tool.
It primarily targets policy planners and policy makers.
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