Is the photovoltaic poverty alleviation project the best way for the poor to escape poverty? ——A DEA and GRA analysis of different projects in rural China

Abstract

The solar photovoltaic poverty alleviation project (PPAP) is an important innovation in China's targeted poverty alleviation (TPA) mission. Through investment in the renewable energy industry and an emphasis on poverty alleviation in rural areas, China's TPA has achieved great success. Although China has invested large amounts of money in PPAP, its actual contribution to rural poverty alleviation has not been verified. This paper analyzes the contribution of PPAP's efficiency in TPA via data envelopment analysis (DEA) and grey relation analysis (GRA). The results show that: 1) the overall efficiency of TPA is high; 2) the overall efficiency of TPA has large geographical differences; 3) the inputs of TPA have a great impact on the efficiency of poverty alleviation; and 4) China's investment in PPAP is indeed effective, but its impact on poverty alleviation is overestimated. Therefore, we propose four policy recommendations: 1) the scale and proportion of financial investment in TPA should be optimized; 2) local governments should allocate poverty alleviation funds according to local situations; 3) the Chinese central government should strengthen macro control and reduce support for PPAP; and 4) local governments should balance the allocation of funds for PPAP and other poverty alleviation projects.