In the field of economics, abatement refers to the reduction or elimination of activities which lead to negative consequences especially concerning environmental pollution. It involves various actions or measures which are aimed at reducing or halting the activities which create pollution which in-turn reduces the impact on environment as well as human health.
In general sense, Abatement can be understood as any act of reducing the adverse side effects such as pollution which are the result of production or consumption activities.
For example, a factory in order to reduce the impact of the harmful emissions can be considered as abatement. It can be linked with the cleaning of the mess that was created during the production.
Use in Economics:
The concept of Abatement is primarily used in Environmental Economics and in formulation of policies. The Economists examine the costs and benefits which are associated with different abatement strategies such as pollution taxes and regulations to promote cleaner production technologies. This helps in discussions relating to sustainable development and addressing issues relating to climate change.
Example:
- Introduction of carbon taxes as an incentive for companies to motivate them to cut down on greenhouse gas emissions.
- Enactment of laws and regulations which compel the automotive industry to manufacture vehicles which have lower emissions.
Source: A to Z of Economics by Dr. NC Raghavi Chakravarthy