1 a situation in which a rate, price, etc. goes down, or goes up more slowly than before: --
2 a reduction in level, especially of something that is harmful: --
It is the final allocation of emissions and associated abatement costs that countries ultimately care about.
An emissions tax induces efficient allocation of abatement across firms, even when all the firms are different and some firms abate more than the others.
Therefore, in terms of social costs of abatement an emissions tax is as efficient as a standard.
If the expected marginal damages are large, because the probability and/or magnitude of possible harms are large, then stringent first-period abatement will be appropriate.
The difference in response could also reflect increasing marginal abatement costs: abatement activities are more difficult and expensive at advanced stages of cleanup.
When the expected marginal penalty exceeds the marginal abatement costs of the source, it will choose to comply with its emission permits.
Emission standards should be set with a consideration of both marginal abatements costs and marginal abatement benefits, relations that are plant and location specific.
Variation in operating costs across abatement facilities was mainly based on differences in the quantity of electricity used, equipment maintenance costs, and labour cost.
