Learning curves for harnessing biomass power: What could explain the reduction of its cost during the expansion of China?

To explain the factors influencing the cost of biomass power in China, we applied an improved model of learning curves in this paper. The impact of cumulative installed capacity of biomass power and other factors on the cost of biomass technology were investigated. The results showed that installed capacity expansion has led to significant cost reduction. Meanwhile, the effect of economies of scale was observed in the analysis of generation cost. The ownership structure of the firm and the size of the developer had no influence on the learning effects and stronger policy support may, ironically, produce negative incentive effects on technology improvement. [ABSTRACT FROM AUTHOR]