UK Accounting Glossary
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.
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.