Analysis of dynamic strategies for decision-making on retrofitting carbon capture, utilization, and storage technology in coal-fired power plants

This study investigates the decision-making behavior of coal-fired power plants regarding the adoption of carbon capture, utilization, and storage technology, considering the roles of the government, coal plants, and residents. With growing concerns over climate change, this technology is crucial for reducing carbon dioxide emissions. The novelty of this work lies in its application of prospect theory and mental accounting to an evolutionary game model, which is a new approach in analyzing the interaction between stakeholders in the context of adopting this technology. The study finds that psychological costs, particularly the Not In My Backyard phenomenon, significantly influence the strategic choices of both the government and residents. Key results indicate that government subsidies and effective communication can alleviate psychological costs and enhance support for the technology, leading to a higher likelihood of its adoption. The results also highlight that reference points—such as perceived losses or gains—play a crucial role in shaping decision-making. This research offers actionable insights for policymakers, emphasizing the importance of stakeholder cooperation, addressing psychological costs, and striking a balance between incentives to facilitate the widespread adoption of this technology. The findings contribute to the literature by providing a comprehensive framework that integrates psychological and economic factors in promoting climate-friendly technologies.