Economic Growth Effect of Poverty Alleviation Policies: Evidence from China’s Photovoltaic Industry

Jiang Hongze1, Liang Pinghan*2,3

1 School of Economics, Anhui University, Hefei, China

2 Center for Chinese Public Administration Research, Sun Yat-sen University, Guangzhou, China

3 School of Government, Sun Yat-sen University

Abstract: In accordance with the directives of the Third Plenary Session of the 20th Central Committee of the Communist Party of China, it is essential to enhance policies for strategic emerging industries like photovoltaic energy and to establish localized mechanisms for developing new quality productive forces. Using a difference-in-differences (DID) approach on a panel data between 2010 and 2020, this study assesses the impact of China’s photovoltaic (PV) poverty alleviation policies on county-level economic growth. The results show that the PV poverty alleviation policy leads to increases of 3.2% in GDP and 5.3% in GDP per capita, respectively, in targeted poverty counties. These findings are robust across multiple tests. The positive effects are particularly salient in regions with stronger central government support and higher solar radiation. Further analysis reveals that the beneficial effect of this policy is stronger in counties with higher share of poor villages and households, as well as larger coverage of PV station development. In terms of its impact mechanisms, the policy has provided new income sources, expanded employment opportunities, and enhanced market vitality through improvements in the electricity supply. This study offers theoretical insights for optimizing China’s PV industry policy under its rural revitalization strategy, and contributes to building long-term sustainable development mechanisms in rural areas. It also advances our understanding of the poverty-reducing potential of new quality productive forces.

Keywords: New quality productive forces; Photovoltaic poverty alleviation; Economic growth; Poverty governance; Sustainable development

JEL Classification Codes: L16; O11; R11

DOI: 10.19602/j. chinaeconomist.2025.09.02