Solar poverty alleviation program raises local incomes and lowers air pollution in rural China

Access to clean energy and poverty reduction remain linked challenges in many low-income regions. Solar power programs often aim to address both goals, yet evidence on their broader economic and environmental effects remains limited. Here, we assess China’s photovoltaic poverty alleviation program, which supports households with low incomes through small-scale solar electricity generation. We exploit a natural experiment created by uneven program rollout across counties and combine satellite observations of air pollution with county-level economic data from 2010 to 2020. We find that counties covered by the program show higher economic output, with gross domestic product rising by about 3%, and lower sulfur dioxide concentrations, which fall by about four micrograms per cubic meter. These effects appear stronger in areas with greater industrial activity and lower income levels. The results indicate that targeted solar programs can support economic development and improve air quality, while long-term financial viability depends on policy design. China’s photovoltaic poverty programs raised economic output by about three percent and reduced sulfur dioxide concentrations by about four micrograms per cubic meter, according to a natural experiment using remote sensing and county-level analysis.