Solar photovoltaic adoption and poverty alleviation: experience from rural China

Abstract Solar photovoltaic (PV) has been increasingly adopted in past years. This study provides empirical analysis using a county-level dataset that supported PV poverty alleviation projects (PPAPs) in rural China over 2008–2019 and finds that the rural per capita income of counties participating in PPAPs on average increased by 5 per cent compared to that of their counterparts. The effect is larger in more economically developed areas, those with abundant sunlight hours and in counties where centralized PV predominates. A cost–benefit analysis suggests that PPAPs can yield a net benefit of 57,690 yuan over their life cycle per rural household, with the ratio of household annual income growth to government fiscal expenditure ranging from 1.2 to 1.6. PPAPs are found to reduce carbon dioxide emissions by 22 million tons annually, accounting for 0.4 per cent of China's carbon emissions reduction in 2020. Our results hold important implications for other countries working to alleviate poverty and reduce carbon emissions.