What is the anti-poverty effect of solar PV poverty alleviation projects? Evidence from rural China

Abstract

Since 2014, China’s photovoltaic poverty alleviation projects (PPAPs) have developed rapidly with the strong support of the Chinese government. Nevertheless, empirical evidence on the contribution of PPAPs in improving the livelihoods of poor rural families is lacking. In order to overcome this knowledge gap, this study adopted a quasi-experimental research method based on a sample dataset of 735 poor families in Chinese rural areas before and after the project. Using five types of livelihood capital values for poor families as poverty proxy indicators, we quantified the net contribution of PPAPs to poverty reduction in rural low-income families through probability distribution comparative analysis, mean comparison analysis, and difference-in-difference regression model. Results demonstrated that the PPAPs were able to precisely target rural families requiring relief and significantly reduced poverty in China, with the net effect on livelihood capital increases for rural families determined as 31.9%. PPAPs have effectively enhanced the economic conditions and social capital of poor families, yet increases in human and natural capital performed poorly. Differences existed in the anti-poverty effect of PPAPs across the three types of solar photovoltaic resource areas. The rural socioeconomic development and access to roads were undoubtedly important factors affecting the livelihoods of rural families.