Rural photovoltaic projects substantially prompt household energy transition: Evidence from China

Photovoltaic poverty alleviation project (PPAP) is one of the “Ten Targeted Poverty Alleviation Strategies” in China announced in 2014. Although it has been confirmed to play a prominent role in poverty alleviation for rural households, its impact on household clean energy choice behaviors has yet to be discovered. Our study analyzes the impact of this project on rural household clean energy transition by employing high-quality panel data from 20,709 households under the poverty monitoring system from 2014 to 2021. The results indicate that the implementation of PPAP has increased the probability of rural household clean energy transition by 3.4%. The mechanism analysis implies that PPAP facilitates the household clean energy transition by raising income of rural households as well as reducing migrant workers to improve local employment. These findings are further confirmed by a series of robustness tests. Heterogeneity analysis shows that providing public welfare jobs and direct photovoltaic (PV) subsidies are the most effective ways to promote clean energy transition for rural households. Our study provides a new understanding of the multiple policy effects of photovoltaic (PV) poverty alleviation as well as its pluralistic development in the future.