Optimal Abatement

This lecture delves into the mathematical model determining the optimal level of abatement, the cost of reducing emissions, and the benefits of abatement in reducing damages. The instructor explains the relationship between emissions, damages, and abatement, illustrating how the gains from abatement decrease as emissions are reduced. The lecture covers the concept of marginal abatement cost and marginal gain, emphasizing the trade-off between reducing emissions and the associated costs. By analyzing the intersection of marginal cost and marginal benefit curves, the lecture highlights the importance of finding the optimal level of abatement to maximize net benefits. The discussion extends to the broader application of cost-benefit analysis in decision-making processes, emphasizing the need to balance environmental gains with associated costs.