To synergize climate mitigation with poverty alleviation, China has implemented photovoltaic poverty alleviation (PVPA) projects since 2014, with Anhui Province being among the initial pilot regions. However, further exploration is needed to determine the extent to which this policy can improve the economic status of poverty-stricken areas. This study aims to evaluate the effects of PVPA projects in Anhui Province from a macroscopic perspective and via the panel data from 11 poverty-stricken counties, including 5 pilot counties, between 2011 and 2018. By employing the differences-in-differences (DID) model and synthetic control method (SCM) model, this study calculated the treatment effects of the PVPA policy. The analysis revealed that the policy did not significantly increase rural residential income at the county level. The insignificant treatment effects reflect a weak policy implementation. The PVPA policy tries to synergize the energy-climate-poverty nexus, requiring the coordination of various stakeholders and departments. Meanwhile, governance theory highlights the multivariate character of policy and considers the role of multiple social actors. Therefore, it is necessary to explore the governance factors when the policy implementation is weak. Further investigation of the PVPA projects reveals that the main governance challenges include insufficient motivation, information asymmetry, conflicts of interest, renewable energy curtailment, and the absence of proper maintenance and benefit distribution mechanisms. Considering the principles of good governance, recommendations for enhancing the effectiveness of the PVPA policy are proposed.
Introduction
As reported by the World Meteorological Organization (WMO), the temperature in 2023 was approximately 1.4 °C above the pre-industrial level1. In light of the climate emergency, rapid and far-reaching transitions across all sectors are necessary to achieve deep emission reductions2. However, a timely energy transition should be integrated into more social agendas3. Achieving Agenda 2030 requires synergizing and resolving trade-offs between sustainable development goals (SDGs)4. The connections among the development of renewable energy, poverty reduction, and climate change mitigation create what is known as an energy-poverty-climate nexus5. Filho et al. (2023) described the synergies between these interconnected goals and climate action6. Despite widespread recognition and discussion of the relationship between energy and climate, Soergel et al. (2021) have highlighted a significant gap in the discussions on climate action and poverty alleviation7.
As the world’s most populous country and the most significant energy consumer and carbon dioxide emitter, China’s sustainable development and poverty reduction efforts are highly important. Recognizing the synergies within the energy-poverty-climate nexus, China has implemented photovoltaic poverty alleviation projects (PVPA) to combine renewable energy development with poverty reduction. Since 2014, Chinese energy regulators have announced an ambitious plan to help alleviate rural poverty by deploying distributed solar photovoltaic systems in poor areas. Anhui was chosen as one of the first batches of photovoltaic pilots8.
The policy analysis of China’s PVPA projects has focused mainly on the impacts evaluation and governance challenges. On the one hand, the positive effects of PVPA projects have generally been recognized9. For example, Xiao et al. (2023) noted that cost-benefit analysis indicates that community-based PVPA projects are cost-effective10. Li et al. (2024) found that the PVPA projects lead to an increase in per capita disposable income11. Moreover, the benefits for climate mitigation have also been confirmed. Wang et al. (2023) estimated that the cumulative carbon emission reduction benefits amounted to 636 million tons12. On the other hand, the effects of these projects are relatively weak because of governance defects. For example, using content analysis of policy instruments, Zhang et al. (2018) identified a need for more demand-oriented policy instruments for PVPA projects13. Scholars have noted obstacles to PVPA implementation, such as subsidy delays, insufficient infrastructure, low-quality equipment, and inflexible profit allocation mechanisms14. Wang et al. (2023) stressed the role of supervision and management in promoting the efficiency of the PVPA projects15.
However, the policy evaluations are mainly conducted from microscopic perspectives, such as the incomes of poverty-stricken families. Research that explores the effects of PVPA projects on residential income from a macroscopic level is rare. Moreover, quantitative analysis of the impacts of the PVPA projects on regional poverty alleviation needs to be expanded, and more discussions on governance issues are needed. In addition, the poverty reduction effect of the PVPA projects also shows strong regional heterogeneity16. Explorations at the provincial instead of the country level are also needed. The main research questions of this paper include whether the PVPA projects have significant and sustainable impacts on poverty alleviation and what the most challenging issues affecting its governance are. Based on a theoretical analysis of renewable energy and poverty alleviation and using the DID and SCM models, this paper aims to evaluate the effects of PVPA projects in Anhui Province, explore the governance challenges, and propose corresponding policy implications and recommendations.
You must be logged in to post a comment.