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MACC Calculator

Compute macccalculator using validated scientific equations. See step-by-step derivations, unit analysis, and reference values.

Reviewed by Daniel Agrici, Founder & Lead Developer

Reviewed by Daniel Agrici, Founder & Lead Developer

Formula

MAC = Total Abatement Cost / Emissions Reduced (tonnes CO2)

Marginal Abatement Cost divides total cost of an emission reduction measure by tonnes of CO2 avoided.

Worked Examples

Example 1: Industrial Efficiency Upgrade

Problem:Abatement cost: $120k reducing 3,000 t/yr. Implementation: $120k. Savings: $25k/yr. Life: 10 yr.

Solution:MAC=$120k/3,000=$40/t\nSavings=$250k\nNet Cost=-$130k\nTotal Reduced=30,000t\nNet MAC=-$4.33/t

Result:MAC: $40/t | Net MAC: -$4.33/t

Example 2: Carbon Capture

Problem:Abatement: $500k reducing 5,000 t/yr. Implementation: $500k. Savings: $10k/yr. Life: 15 yr.

Solution:MAC=$100/t\nSavings=$150k\nNet=$350k\nReduced=75,000t\nNet MAC=$4.67/t

Result:MAC: $100/t | Net: $4.67/t

Frequently Asked Questions

How does the MACC help climate policy development?

The MACC provides policymakers with a structured framework for evaluating emission reduction strategies. By ranking options cheapest to most expensive, it identifies the most cost-effective pathway to achieve targets. It helps determine optimal carbon tax levels and quantifies total investment needed for specific reduction goals. Revenue from negative-cost measures can fund more expensive interventions.

How does the breakeven carbon price relate to MACC?

The breakeven carbon price is the carbon tax at which a specific measure becomes economically viable. If net MAC is $30/tonne, the measure is worthwhile when carbon price exceeds $30. Measures with negative MACs are already viable without any carbon price. The MACC visually shows which measures fall below any given carbon price line, indicating total achievable abatement.

What are the main limitations of MACC analysis?

MACC assumes independent measures, but interactions between options can change individual costs. Static analysis may not capture technology learning and market development. Transaction costs, institutional barriers, and behavioral factors are often excluded. Results are sensitive to assumptions about discount rates, energy prices, and technology costs. Sensitivity analysis is essential.

References

Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy