McKinsey Figure

# McKinsey Figure - excessively easy to communicate the...

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McKinsey Figure 1. In the McKinsey Figure given, width of each bar represents Abatement Potential and the height represents Cost per ton of CO2. 2. The Area means Cost Abatement Potential. (Area= Width*Height=Abatement potential*cost per ton of CO2) 3. Area under curve lists steps that we can adopt to reduce the cost and save money. 4. The barrier to making this happen is that we do not have knowledge about the demand for abatement or the importance of this issue at global level to pursue it with specific purpose. Most of the public being uneducated and unaware of this issue does not want to switch to new things leading to change of habits. Lack of willingness and determination to achieve this goal makes it not happen eventually. As engineers, it becomes our duty to apply our supply-side research to specific abatement targets and help policy makers and business leaders understand the impact of abatement approaches by regions and sectors to such problems. Once the leaders understand the entire concept it becomes

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Unformatted text preview: excessively easy to communicate the importance, need and consequences of this well within the public through information sessions and events. 5. On the left, we have all money saving measures and the total sum of all the heights is around 1210. We take 1210 from positive side and hence 20e tons of CO2 can be saved because at this point, Cost of left=Cost of right 6. Marginal Cost means Change in Cost. Measuring or calculating the benefits is useful to compare it with cost of spending. For example, If, benefit of spending more = cost of spending more, Then we should consider it until the cost is more than the benefit. If gas is \$4.50/ gallon, then addition of \$0.66 will lead to lower increase percentage in total cost of gas as compared to the rate of \$2.00. Therefore, it is user dependent because they are the users using gas according to their personal needs and income....
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McKinsey Figure - excessively easy to communicate the...

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