Methodologies for evaluating the marginal cost of reducing greenhouse gas emissions in decarbonization: a systematic review

Authors
Keywords:
Marginal abatement cost curves, Greenhouse Gas Mitigation, Review of Methodologies, Environmental Economics
Abstract

This is a review of methodologies that use the marginal abatement cost (MAC) of greenhouse gas emissions, with the aim of identifying the types of approaches available, their advantages, disadvantages, in which cases they are used and how complex they are (both computationally and in terms of obtaining data). The results of the research found and explained six main types of models: expert-based approaches, engineering models, distance functions, computable general equilibrium models, integrated assessment models and hybrid models in which all use MAC curves to identify economic measures to mitigate climate change and establish decarbonization pathways. In addition, the possibility of using hybrid models that integrate various methodologies for a more complete assessment is discussed, as well as the difficulties of applying them. The main contribution is not only to provide a review of the methodologies, but also to compare them and show in which contexts each one is best applied, seeking to serve as a guide for future research and practical applications in environmental economics.

Author Biographies
  1. Thiago Senatore Morila, Universidade Federal do Espírito Santo (UFES)

    Possui graduação em Engenharia de Produção pela Universidade Federal do Espírito Santo (2018). Pós graduação mestrado em energia na Universidade Federal do Espírito Santo(2021). Doutorando em Engenharia Ambiental na Universidade Federal do Espírito Santo.

  2. Neyval Costa Reis Junior, Universidade Federal do Espírito Santo (UFES)

    Prof. Neyval Costa Reis Jr. is currently Professor in Air Pollution at the Department of Environmental Engineering within UFES. He undertook his PhD studies at the Environmental Technology Centre of the Chemical Engineering Department of University of Manchester (UMIST). He currently holds a Productivity Research Grand from the Brazilian Research Council (CNPq). The main research interests are related to Computational Fluid Dynamics, Air pollution and turbulence. Prof. Reis has authored more than 70 scientific articles and more than 80 conference papers, and supervised 11 PhD students and 25 MSc students. His scientific contribution is characterized by interdisciplinarity, employing engineering tools and transport phenomena to solve environmental problems, including characterization and dispersion of pollutants in urban environments, emission estimates, urban planning and mitigation/impact/resilience to climate change. He was Research Director at Federal University of Espírito Santo between 2008 and 2012 and Pro-Rector of Research and Graduate Studies at the Federal University of Espírito Santo (UFES) and member of the State Council of Science and Technology of Espírito Santo between 2012 and 2020. He is currently Coordinator of the Institute of Climate Studies from UFES/VALE/FAPES and Coordinator of the Plan for Neutralization of GHG Emissions of the State od Espírito Santo (NetZeroES).

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2025-09-09
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Morila, T. S., & Reis Junior, N. C. (2025). Methodologies for evaluating the marginal cost of reducing greenhouse gas emissions in decarbonization: a systematic review. Brazilian Journal of Production Engineering, 11(3), 292-315. https://doi.org/10.47456/bjpe.v11i3.48732