Policy evaluation and optimization for photovoltaic poverty alleviation projects in Anhui Province of China

Abstract

To synergize climate mitigation with poverty alleviation, China has implemented photovoltaic poverty alleviation (PVPA) projects since 2014, with Anhui Province being among the initial pilot regions. However, further exploration is needed to determine the extent to which this policy can improve the economic status of poverty-stricken areas. This study aims to evaluate the effects of PVPA projects in Anhui Province from a macroscopic perspective and via the panel data from 11 poverty-stricken counties, including 5 pilot counties, between 2011 and 2018. By employing the differences-in-differences (DID) model and synthetic control method (SCM) model, this study calculated the treatment effects of the PVPA policy. The analysis revealed that the policy did not significantly increase rural residential income at the county level. The insignificant treatment effects reflect a weak policy implementation. The PVPA policy tries to synergize the energy-climate-poverty nexus, requiring the coordination of various stakeholders and departments. Meanwhile, governance theory highlights the multivariate character of policy and considers the role of multiple social actors. Therefore, it is necessary to explore the governance factors when the policy implementation is weak. Further investigation of the PVPA projects reveals that the main governance challenges include insufficient motivation, information asymmetry, conflicts of interest, renewable energy curtailment, and the absence of proper maintenance and benefit distribution mechanisms. Considering the principles of good governance, recommendations for enhancing the effectiveness of the PVPA policy are proposed.