In the second video of the module we will dive into the different cost components of emission reduction options. We will also analyze the different ways to compare the costs of these options. Consideration of the relative costs of climate change mitigation efforts is vital for determining their feasibility of specific strategies, the concepts covered in this video are therefore important.

Key takeaways: 

• There are two important types of costs discussed in this chapter: initial and operational costs.
• Cost-benefit analysis is a very important tool in analyzing mitigation investments.
• Levelized cost of energy (LCOE) is often used to compare energy sources.