Solar Villages: Evaluating the Economic Benefits of China’s Rural Electrification Programs
DOI:
https://doi.org/10.15575/jieb.v6i1.57233Keywords:
China, Education, Health, Household income, Rural electrification, Solar energyAbstract
Rural solar-based electrification has become an important instrument for expanding energy access while promoting socio-economic development in rural areas. This study aims to examine the impact of rural solar electrification programs in China on household income, education, and public health. The study employs a quantitative approach with a quasi-experimental design, combining Difference-in-Differences (DiD) and Propensity Score Matching (PSM) to compare socio-economic changes between areas receiving electrification interventions and comparable control areas with similar initial characteristics. The findings indicate that rural electrification has a positive effect on household income, particularly non-farm income, and contributes to improvements in educational attainment and health outcomes. More specifically, electrification is associated with increased years of schooling, higher school participation, and longer study time among children, while also reducing the incidence of respiratory illness and improving households’ perceived health status. These findings suggest that rural solar electrification serves not only as a means of providing energy access but also as a broader development instrument that expands economic opportunities, strengthens human capital, and enhances rural welfare. Therefore, rural electrification policies should be integrated with local economic development, education, and health programs to maximize their long-term, sustainable benefits.
References
Ali, E., Gyamfi, S., Obeng, E. O. B., & Yaotse, K. (2024). Determinants of household cooking fuel choices: Does proximity to mine site matter? Journal of Cleaner Production.
Bernard, T., & Torero, M. (2015). Social interaction effects and connection to electricity: Experimental evidence from rural Ethiopia. Economic Development and Cultural Change, 63(3), 459–484.
Burlig, F., & Preonas, L. (2021). Out of the darkness and into the light? Development effects of rural electrification. The Review of Economics and Statistics, 103(4), 690–705.
Burlig, F., & Preonas, L. (n.d.). Out of the darkness and into the light? Development effects of rural electrification (Energy Institute at Haas Working Paper No. 268).
Burke, P. J., Stern, D. I., & Bruns, S. B. (2017). The impact of electricity on economic development: A macroeconomic perspective. International Review of Environmental and Resource Economics.
Freeman, C., & Louçã, F. (2001). As time goes by: From the industrial revolutions to the information revolution. Oxford University Press.
Gashaye, A. T., Liu, H., & Li, J. (2025). The effect of access to electricity on rural households of underdeveloped countries: Evidence from Ethiopia. Energy Policy.
Grogan, L., & Sadanand, A. (2013). Rural electrification and employment in poor countries: Evidence from Nicaragua. World Development, 43, 252–265.
Huang, C., Liu, Y., & Chang, Y. (2018). [Lengkapi judul artikel sesuai naskah asli].
Khandker, S. R., Barnes, D. F., & Samad, H. A. (2012). The welfare impacts of rural electrification in Bangladesh. The Energy Journal, 33(1), 187–206.
Munnell, A. H. (1992). Policy watch: Infrastructure investment and economic growth. Journal of Economic Perspectives, 6(4), 189–198.
Peng, J., Wang, Z., & Huang, F. (2022). Does the solar PV program enhance the social empowerment of China’s rural poor? Energy, 253, 124100.
Proffen, C. (2024). Does electrification matter for child development? Evidence from Ethiopia.
Sarkar, M. A. R., Jalal, M. J. E., & Ding, S. (2025). Determinants of catastrophic health expenditure and its impact on poverty in deltaic country: Evidence from Bangladesh. Sustainable Development.
Sayigh, A. (2024). Transition towards a carbon free future. Springer.
Tang, W., Feng, G., Tan, Q., Xu, Z., Feng, K., & Lu, X. (2023). Current situation and trend analysis of rural electrification in China. IOP Conference Series: Earth and Environmental Science, 1171.
Van de Walle, D., Ravallion, M., Mendiratta, V., & Koolwal, G. (2017). Long-term gains from electrification in rural India. World Bank Economic Review, 31(2), 385–411.
Wallace, W. L., & Tsuo, Y. S. (1997). Photovoltaics for rural electrification in the People’s Republic of China. In Conference Record of the Twenty-Sixth IEEE Photovoltaic Specialists Conference (pp. 1277–1280).
Wang, H., Tian, P., & Jin, P. (2005). Electricity consumption and economic growth in China. In Proceedings of ICSSSM ’05: 2005 International Conference on Services Systems and Services Management (Vol. 2, pp. 1331–1334). IEEE.
Wang, W., Jin, S., & Zhang, C. (2023). Social capital and rural residential rooftop solar energy diffusion—Evidence from Jiangsu Province, China. Energy Research & Social Science, 101, 103110.
Xie, L., Gao, P., & Wang, L. (2011). Policy and development of renewable energy in China: Towards integrated rural energy strategies. Energy, 36(3), 1336–1344.
Yang, M. (2003). China’s rural electrification and poverty reduction. Energy Policy, 31(3), 283–295.
Zhang, H., Wu, K., Qiu, Y., et al. (2020). Solar photovoltaic interventions have reduced rural poverty in China. Nature Communications, 11, 1969.
Zhang, X., & He, J. (2013). China’s township electrification program: Progress, impacts, and lessons for sustainable rural development. Renewable and Sustainable Energy Reviews, 25, 761–770.
Zhang, X., Xu, K., He, M., & Wang, J. (2022). A review on the rural household energy in China from 1990s: Transition, regional heterogeneity, emissions, energy-saving, and policy. Frontiers in Energy Research, 10.
Zhang, Y., & Kumar, S. (2011). Evaluating the impact of rural electrification in Western China. Energy Economics, 33(5), 885–894.
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Copyright (c) 2026 Utkina Margarita Sergeevna (Author)

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).