Impact of photovoltaic power generation on poverty alleviation in Jiangsu, China

Abstract

The photovoltaic poverty alleviation project, part of the “Ten Major Precise Poverty Alleviation Projects” implemented by the Poverty Alleviation Office of the State Council, significantly contributes to eradicating poverty and rural revitalization. A difference-in-differences model was utilized in this study to assess this project's impact on rural households. This analysis used tracking data from households both with photovoltaic equipment installed and without in “S Town,” Jiangsu Province, from 2017 to 2021. The results indicate that photovoltaic installations lead to an increase in per capita disposable income, hence reducing poverty. However, further analysis suggests that better health and work capacity in disadvantaged households correlate with lesser benefits from the photovoltaic project in terms of income. The policy implications of these findings include a necessity for developing innovative models in the photovoltaic sector to enhance conditions for farmers, reducing their dependence on government subsidies.