1)How is marginal abatement cost calculated?

2)Why does marginal abatement cost increase?

1)The marginal abatement cost is usually calculated in the context of pollution or emission reductions.

• The marginal abatement cost represents the cost of abating one extra unit of pollution. In other words, it is computed by subtracting the total abatement cost of X units from the total abatement cost of X + 1 units.

Marginal abatement cost = Total abatement cost, X+1 Units - Total Abatement cost, X Units

2)Marginal cost refers to the expenses that is incurred for producing an additional unit of a product or service. Marginal abatement cost refers to the additional cost that is incurred for adding extra caution to prevent environmental negativities.

The marginal abatement cost increase because more environmental controls require more expenses. Thus, the cost of reducing ecological negativities increases as more pollution increases. Also, the increase in the marginal abatement cost can be explained by the fact that controlling environmental negativities does not follow economies of scale. Economies of scale refer to an economic concept that argues that an increase in a unit of production does not increase production cost.