Marginal Abatement Costs – Focus: Hotel Real Estate

Using marginal abatement cost (MAC) for investment decision-making brings hoteliers, investors, owners and operators multiple benefits, depending on the type and scope and responsibility of investment.  The marginal abatement cost curve (MACC) provides a visual representation to easily identify the initiatives that have negative abatement costs and positive NPV.  Applying the MAC methodology to decision-making is a matter of risk assessment and management towards regulatory demands, whether in terms of carbon pricing or energy efficiency of buildings, and mitigating the risk of stranding assets.  MACC can provide great insights and a plan of action to decarbonize the hospitality industry.