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Biomass power generation is helpful to build a clean, low-carbon, and green energy system, but the shortage of raw materials supply severely restricts the development of the biomass power generation industry in China. To solve problems of supply chain disharmony and low efficiency of government subsidy caused by stochastic factors in biomass power supply chain, this paper studies the decision-making of government subsidy on biomass power generation supply chain. First, a two-level supply chain model under stochastic supply and stochastic output environment is built. The two-level supply chain consists of farmers and the biomass power plant. Second, to achieve the coordination of the two-level supply chain through the calculation of the model, it sets up the combined contract model based on surplus compensation, shortage penalty, and revenue sharing. Then, the validity of the contract is demonstrated by the data obtained from the field survey. Finally, depending on the model and contract coordination results of the supply chain, the impacts of government subsidies on two members' decision-making are analyzed, and the changes of members' profits and chain's profits are discussed. Therefore, the government subsidy strategy for biomass direct-fired power generation is proposed. [ABSTRACT FROM AUTHOR]

Biomass is widely used by households for cooking and heating in rural China. Along with rapid economic growth over the last three decades, increasing rural households tend to use less biomass and more commercial energy such as coal and electricity. In this paper, we analyzed the key drivers behind energy consumption and switching by rural households based on survey data of energy consumption by rural households in ten villages of Shanxi province in China. Our econometric results show that income growth can induce less use of biomass and more use of coal and modern fuels. However, no evidence shows that even wealthy households has abandoned biomass use in Shanxi, mainly due to the "free" access to land and agricultural resources in these villages. Previous wealth of a household represented by house value can lead to more time spent on biomass collection. Access to land resources has positive effects on biomass use and collection. Other key variables include education, household size, the number of elderly members, and coal price. We also find huge differences between villages, indicating the importance of access to agricultural resources and markets. [ABSTRACT FROM AUTHOR]