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During incomplete combustion, the fuel does not burn fully due to insufficient oxygen, resulting in the formation of carbon monoxide, soot, and other by-products. This process inherently leads to decreased energy output because the available energy in the fuel is not fully utilized. Instead of converting the chemical energy of the fuel entirely into heat energy, much of it is wasted or lost in the form of unburned fuel and harmful emissions.

The other aspects of combustion, such as efficient fuel consumption or increased heat generation, are typically associated with complete combustion, where the fuel is fully oxidized and optimal energy is extracted. Higher oxygen levels also do not characterize incomplete combustion; in fact, it is characterized by a lack of adequate oxygen for complete burning. Thus, the key factor in incomplete combustion is the resulting reduced energy efficiency and output.