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Carbon Abatement Marginal Cost One Step Tool

Incremental cost per avoided tonne for a specified project step, using matched costs and emissions boundaries.

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Description

Return abatement = baselineEmissions-projectEmissions, incrementalCost = projectCost-baselineCost and costPerAvoidedTonne = incrementalCost/abatement.

Average, incremental and marginal environmental costs answer different questions. A ratio over a finite reduction is a step average, while marginal cost describes an additional unit; meaningful comparisons need common periods, boundaries and units.

Return abatement = baselineEmissions-projectEmissions, incrementalCost = projectCost-baselineCost and costPerAvoidedTonne = incrementalCost/abatement.

When to use this tool

Use Carbon Abatement Marginal Cost One Step when checking a supplied environmental cost contribution or comparison.

How to use the tool and how it works

  1. Enter baselineEmissions, projectEmissions, baselineCost, projectCost. Use the units and conventions below.
  2. Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
  3. Read abatement, incrementalCost, costPerAvoidedTonne. Use the output convention below.

Require baselineEmissions > projectEmissions >= 0. Return abatement = baselineEmissions-projectEmissions, incrementalCost = projectCost-baselineCost and costPerAvoidedTonne = incrementalCost/abatement.1

Input fieldMeaning and unitsAccepted input
baselineEmissionsBaseline EmissionsRequired. Finite number.
projectEmissionsProject EmissionsRequired. Finite number; minimum 0.
baselineCostBaseline CostRequired. Finite number.
projectCostProject CostRequired. Finite number.
Output fieldInterpretationReturned shape
abatementAbatementRequired. Finite number.
incrementalCostIncremental CostRequired. Finite number.
costPerAvoidedTonneIncremental cost per metric tonne of modeled emissions avoided.Required. Finite number.
json
{
  "input": {
    "baselineEmissions": 1000,
    "projectEmissions": 800,
    "baselineCost": 10000,
    "projectCost": 14000
  },
  "output": {
    "abatement": 200,
    "incrementalCost": 4000,
    "costPerAvoidedTonne": 20
  }
}

Limitations and assumptions

  • Emissions must be in metric tonnes for the named per-tonne output, with matching pollutant or CO2-equivalent conventions, horizon and project boundary. Negative incremental costs indicate modeled savings; this discrete average step cost is not an automatically estimated derivative or verified climate benefit.
  • Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
  • Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.

Alternative or Complementary methods

Assemble comparable costs and effects across the full baseline and project, and distinguish financial costs from social costs before ranking alternatives.

References

  1. Calculation and input contract: environmental-economics/carbon-abatement-marginal-cost-one-step — tool.io

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