Powering Rural Prosperity: How Clean Energy Adoption Transforms Comprehensive Welfare of Rural Residents in China

The transition to clean energy in rural areas plays a critical role in mitigating environmental challenges and improving human well-being. This study utilizes data from the 2020 China Family Panel Studies (CFPS), a nationally representative dataset, to assess the comprehensive welfare levels of rural residents using the entropy method. Additionally, an endogenous switching regression (ESR) model is employed to examine the impact of clean energy adoption on the welfare levels of rural residents in China. The empirical results demonstrate that individual, family, and social characteristics have a significant influence on decision-making regarding clean energy adoption. Moreover, the adoption of clean energy is shown to significantly enhance comprehensive welfare levels. Specifically, rural residents who adopt clean energy experience a notable decline in welfare levels if they cease its use, while those who initially did not utilize clean energy show substantial improvements in welfare upon its adoption. These findings remain robust after conducting sensitivity analyses. Heterogeneity analysis reveals that the welfare effects of clean energy adoption vary among rural residents based on gender and region. Overall, this study provides valuable insights into how clean energy adoption can improve human well-being and support sustainable development.