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

Author

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  • Nadine Ibrahim

    (Faculty of Applied Science and Engineering, University of Toronto, 35 St. George Street, Toronto, ON M5S 1A4, Canada
    These authors contributed equally to this work.)

  • Christopher Kennedy

    (Faculty of Applied Science and Engineering, University of Toronto, 35 St. George Street, Toronto, ON M5S 1A4, Canada
    These authors contributed equally to this work.)

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.

Suggested Citation

  • Nadine Ibrahim & Christopher Kennedy, 2016. "A Methodology for Constructing Marginal Abatement Cost Curves for Climate Action in Cities," Energies, MDPI, vol. 9(4), pages 1-17, March.
    • Handle: RePEc:gam:jeners:v:9:y:2016:i:4:p:227-:d:66299
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    References listed on IDEAS

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    1. Karin Sjöstrand & Andreas Lindhe & Tore Söderqvist & Peter Dahlqvist & Lars Rosén, 2019. "Marginal Abatement Cost Curves for Water Scarcity Mitigation under Uncertainty," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 33(12), pages 4335-4349, September.
    2. Ahn, Young-Hwan & Jeon, Wooyoung, 2019. "Power sector reform and CO2 abatement costs in Korea," Energy Policy, Elsevier, vol. 131(C), pages 202-214.
    3. Espinosa Valderrama, Mónica & Cadena Monroy, Ángela Inés & Behrentz Valencia, Eduardo, 2019. "Challenges in greenhouse gas mitigation in developing countries: A case study of the Colombian transport sector," Energy Policy, Elsevier, vol. 124(C), pages 111-122.
    4. Lurdes Jesus Ferreira & Luís Pereira Dias & Jieling Liu, 2022. "Adopting Carbon Pricing Tools at the Local Level: A City Case Study in Portugal," Sustainability, MDPI, vol. 14(3), pages 1-20, February.
    5. Jenny Gabriela Peña Balderrama & Thomas Alfstad & Constantinos Taliotis & Mohammad Reza Hesamzadeh & Mark Howells, 2018. "A Sketch of Bolivia’s Potential Low-Carbon Power System Configurations. The Case of Applying Carbon Taxation and Lowering Financing Costs," Energies, MDPI, vol. 11(10), pages 1-20, October.
    6. John F. Raffensperger, 2020. "A price on warming with a supply chain directed market," Papers 2003.05114, arXiv.org, revised Mar 2021.
    7. Flower, Jack & Hawker, Graeme & Bell, Keith, 2020. "Heterogeneity of UK residential heat demand and its impact on the value case for heat pumps," Energy Policy, Elsevier, vol. 144(C).

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