McKinsey Curve – Energy Efficiency

If you have noticed the McKinsey curve, and I’m sure you have, one thing that surprises me is why a significant portion of the graph has abatement cost in negative, yet haven’t happened yet! Simple economics can’t explain that. So why does it remain a resource untapped?

One possible explanation can be a lack of information.

Second, is a principal-agent problem

Reference

McKinsey Curve