The demand curve for emissions is a marginal cost of abatement curve when read from right to left.

Question

Quizplus · Accepted Answer

The marginal cost of abatement curve represents the cost incurred for reducing emissions by a certain amount. When this curve is read from right to left, it represents the corresponding quantity of emissions that can be reduced for each increment in cost. This is equivalent to the demand curve for emissions, where each point on the curve represents the quantity of emissions that will be demanded at a given price or cost. Therefore, the demand curve for emissions is a marginal cost of abatement curve when read from right to left.

The Demand Curve for Emissions Is a Marginal Cost of Abatement