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| Author: | Oka, T. (et al.) |
| Title: | Calculating cost-effectiveness for activities with multiple environmental effects using the maximum abatement cost method |
| Journal: | Journal of industrial ecology
2005 : FALL, VOL. 9:4, p. 97-103 |
| Index terms: | industries ecology efficiency cost effectiveness externalities |
| Freeterms: | green purchasing environmental procurement |
| Language: | eng |
| Abstract: | As means of assessing preferential purchasing of products with multiple environmental effects, a maximum abatement cost (MAC) method is proposed. Using the MAC method, cost-effectiveness of the introduction of a product with less emissions of some substances than conventional products can be assessed. A total sum, called avoidable abatement cost (AAC), is compared with the additional private cost (as: a-p-c.) of the product for the purchaser. When the a-p-c. is smaller than the AAC, the product is regarded as relatively eco-efficient. The MAC method is illustrated with an assessment of industrial pumps. |
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