Evaluating the economic and environmental impacts of distributed photovoltaic policy: Insights from county-level data in China

Abstract

Distributed photovoltaic (DPV) construction has a positive effect on environmental protection and energy security, and a notable significance in promoting economic development and improving people's livelihoods. However, existing research lacks empirical evidence assessing the integrated implementation effects of DPV construction policy. To bridge this knowledge gap, this study employs a difference-in-differences model to investigate the effects of DPV construction policy in China, covering 1766 county-level administrative regions in China from 2011 to 2019. The findings reveal that DPV construction effectively combines the dual benefits of emissions reduction and economic growth. On average, DPV construction reduces local carbon emissions by approximately 6.21% and increases per capita GDP by around 3.22% compared with the control group. Analysis of the underlying mechanisms indicates that DPV construction has several key impacts. First, it facilitates the transformation of resource-dependent cities, resulting in emissions reduction. Second, it generates economic development opportunities in rural areas with abundant solar energy resources, enabling regions to convert resource advantages into economic benefits. This study yields significant practical evidence and provides valuable insights for advancing the synergistic development of economic growth and low-carbon environmental protection using DPV.