Inderscience Publishers

A statistical–analytical methodology for the construction of abatement cost curves

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This paper outlines a procedure for the construction of pollution abatement cost curves in the perspective of cost-effectiveness analysis for meeting environmental performance standards. After a conceptual exposition, it gives detailed practical guidelines for statistical and analytical conventions for building up an abatement cost curve for a specific type of environmental pressure or pollution, for example CO2 or SO2, by implementing additional technical environmental measures in polluting production and consumption processes in enterprises, branches and private households. Definitional and empirical difficulties in the calculation of cost curves are discussed, including interactions and incompatibilities between pollution abatement techniques, possible interactions between pollutants, and data deficiencies. An example of the method is given for NOx emissions in the sector of energy production.

Keywords: abatement cost curves, cost-effectiveness, environmental standards, national accounts, NOx emissions, pollution, statistical methods

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