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Community-based energy revolution: An evaluation of China's photovoltaic poverty alleviation Program's economic and social benefits

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  • Xiao, Han
  • Song, Feng
  • Zheng, Xinye
  • Chen, Jiaying

Abstract

We use a unique micro dataset from the period of 2014–2021 to evaluate China's Photovoltaic Poverty Alleviation (PVPA) program. By employing a difference-in-differences strategy, we find that the community-based PVPA stations distributed in China are anti-poverty facilities that can reconcile equity and efficiency. The PVPA program not only significantly increases the total income of treated households, but also reduces the within-village inequality and encourages off-farm labor supply. Heterogeneity analysis suggests that the effect of PVPA is more substantial for households with a high dependency ratio and in villages where officials are well-educated. The benefit-cost ratio of a village-level PVPA station is greater than one, indicating that the community-based PVPA program is cost-effective.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:enepol:v:177:y:2023:i:c:s0301421523001404
    DOI: 10.1016/j.enpol.2023.113555
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    More about this item

    Keywords

    Photovoltaic poverty alleviation program; Community-based program; Green energy; Labor supply;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery

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