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The analysis finds that CCS without EOR is currently unprofitable due to low carbon prices, while CCS combined with EOR and DSF storage can be profitable if oil prices remain above a specific threshold. The study highlights that high investment costs and energy efficiency losses at power plants create significant financial barriers, necessitating either high commodity prices or substantial government subsidies to incentivize early adoption.

The study investigates the optimal abandonment of coal-fired power plants in the EU, considering uncertainties in coal, gas, and CO2 emission allowance prices. Using a three-dimensional binomial lattice, the authors find that abandonment is unlikely unless CO2 prices reach very high levels, particularly because plants can operate as peaking units. The decision is heavily influenced by the plant's remaining lifetime, thermal efficiency, and the volatility of carbon prices.

The research employs a three-dimensional binomial lattice and real options analysis to determine the trigger investment cost for energy efficiency projects. It finds that the 'energy efficiency paradox'—where worthwhile projects are not undertaken—can be explained by the value of the option to wait, particularly when the remaining useful life of a facility is short.