Abatement Cost

Business, Legal & Accounting Glossary

Definition: Abatement Cost


Abatement Cost

Quick Summary of Abatement Cost


The abatement cost is a cost that is paid by a business when they have been asked to reduce or remove any negative by products or negative nuisances that are created during, at or after the time of production.




What is the dictionary definition of Abatement Cost?

Dictionary Definition


The abatement cost can be defined as being the total cost or even cost per unit of achieving a target or goal.

In environmental terms the abatement cost is the cost of achieving a reduction of pollution.

The marginal abatement cost ought to be equated with the marginal benefit to ascertain an efficient reduction of pollution.

The idea of abatement cost is applicable to the actions of businesses or the actions of consumers and the pollution these actions generate.


Full Definition of Abatement Cost


A cost incurred by companies for the removal or reduction of a negative byproduct they themselves have created; for example, the fees required for an oil refinery to clean up its own pollution.

An abatement cost refers to the cost associated with the voluntary or compulsory removal of an undesirable result of a production process.

Abatement costs are often an indirect outcome of government-imposed regulations intended to benefit the greater community and/or environment. In this context, they represent, albeit by necessity, a source of economic inefficiency somewhat similar in nature to a tax.


Examples of Abatement Cost in a sentence


Abatement cost is the cost of reducing environmental negatives such as pollution.
The most cost-effective strategy depends on the polluter’s marginal abatement cost and the market price of permits.
A worldwide carbon tax would result in an uneven burden of abatement costs across the world and would change with time.


Cite Term


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Abatement Cost. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
December 05, 2024 https://payrollheaven.com/define/abatement-cost/.
Chicago Manual of Style (CMS):
Abatement Cost. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/abatement-cost/ (accessed: December 05, 2024).
American Psychological Association (APA):
Abatement Cost. PayrollHeaven.com. Retrieved December 05, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/abatement-cost/

Definition Sources


Definitions for Abatement Cost are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 2nd July, 2019 | 0 Views.