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Targeted poverty alleviation through photovoltaic-based intervention: Rhetoric and reality in Qinghai, China

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  • Liao, Chuan
  • Fei, Ding
  • Huang, Qingxu
  • Jiang, Lu
  • Shi, Peijun

Abstract

In 2014, China initiated a nationwide poverty reduction campaign through deploying photovoltaic (PV) systems in its vast rural areas, which aims to support over 2 million households. Despite the significant socioeconomic benefits anticipated by policy-makers, it remains unclear regarding the challenges of implementing such an ambitious program in remote rural areas and its effect on poverty reduction. Focusing on Qinghai, a province that serves as the testbed for solar energy development in China but suffers chronic poverty, we aim to assess implementation status of the program, and examine whether and how solar energy-based development affects rural household well-being and generates socioeconomic spillovers. Using data from multiple sources, including household survey, interviews, policy documents, and large-scale socioeconomic covariates, as well as advanced statistical and spatial analyses, we find there have been substantial adjustments to the plan of building small-scale PV stations across poor villages throughout Qinghai. While total installation capacity was met, the 97 planned PV stations in 39 counties were aggregated into 24 medium- to large-scale PV farms in 27 counties. We also find substantial challenges to precisely target the poor, improve their income, facilitate a transition in household use of energy, and enhance local capacity for economic development. Future PV-based intervention programs need to sufficiently consider local contexts and demands, and promote local engagement to achieve the twin goals of sustainable energy transition and poverty reduction.

Suggested Citation

  • Liao, Chuan & Fei, Ding & Huang, Qingxu & Jiang, Lu & Shi, Peijun, 2021. "Targeted poverty alleviation through photovoltaic-based intervention: Rhetoric and reality in Qinghai, China," World Development, Elsevier, vol. 137(C).
    • Handle: RePEc:eee:wdevel:v:137:y:2021:i:c:s0305750x20302448
    DOI: 10.1016/j.worlddev.2020.105117
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    6. Liao, Chuan & Erbaugh, James T. & Kelly, Allison C. & Agrawal, Arun, 2021. "Clean energy transitions and human well-being outcomes in Lower and Middle Income Countries: A systematic review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    7. Victor Kaiyuan Lin & Jenn‐Hwan Wang, 2023. "The Green Energy Transition and Peripheral City Development in China: Towards a Local Eco‐developmental State," Development and Change, International Institute of Social Studies, vol. 54(3), pages 514-542, May.
    8. Yingfeng Fang & Fen Zhang, 2021. "The Future Path To China’s Poverty Reduction—Dynamic Decomposition Analysis With The Evolution Of China’s Poverty Reduction Policies," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 158(2), pages 507-538, December.
    9. Deng, Nana & Wang, Bo & Wang, Zhaohua, 2023. "Does targeted poverty alleviation improve households’ adaptation to hot weathers: Evidence from electricity consumption of poor households," Energy Policy, Elsevier, vol. 183(C).
    10. Chang, Qing & Ma, Wanglin & Vatsa, Puneet & Li, Jian, 2022. "Has the Targeted Poverty Alleviation program improved household welfare in rural China?," Journal of Policy Modeling, Elsevier, vol. 44(5), pages 1041-1056.
    11. Shiyu Yan & Jiao Wang & Zhineng Hu, 2023. "Assessment of the effects of targeted poverty alleviation policy on differently poverty‐stricken households: A multi‐propensity score weighting model," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1792-1833, August.
    12. Zhang, Tong & Hu, Wuyang & Zhu, Zhanguo & Penn, Jerrod, 2023. "Consumer preference for food products addressing multiple dimensions of poverty: Evidence from China," Food Policy, Elsevier, vol. 115(C).
    13. Zhao, Jing & Zhang, Qin, 2021. "The effect of contract methods on the lead time of a two-level photovoltaic supply chain: revenue-sharing vs. cost-sharing," Energy, Elsevier, vol. 231(C).
    14. Tang, Jianjun & Gong, Jiaowei & Ma, Wanglin & Rahut, Dil Bahadur, 2022. "Narrowing urban–rural income gap in China: The role of the targeted poverty alleviation program," Economic Analysis and Policy, Elsevier, vol. 75(C), pages 74-90.
    15. Liu, Yuan & Chen, Jiahui & Zhao, Lutao & Liao, Hua, 2023. "Rural photovoltaic projects substantially prompt household energy transition: Evidence from China," Energy, Elsevier, vol. 275(C).
    16. Xiao, Han & Song, Feng & Zheng, Xinye & Chen, Jiaying, 2023. "Community-based energy revolution: An evaluation of China's photovoltaic poverty alleviation Program's economic and social benefits," Energy Policy, Elsevier, vol. 177(C).

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