Speaker: Rong Ma, Associate Professor, China Agricultural University; Alumnus (Visiting Fellow) and Collaborator, Harvard-China Project

This paper examines a solar subsidy program in China designed to alleviate poverty among rural households in the country’s most impoverished regions through solar resource development. The empirical findings indicate a substantial increase in firm entry in treated villages, accompanied by a marked structural transformation characterized by a reduction in self-employment and a shift in land use from farmland to built-up areas. This surge in firm entry appears to be driven primarily by improvements in local electricity availability and reliability, as well as upgrades in local transportation infrastructure. Correspondingly, the analysis identifies a notable rise in local nightlight intensity and a reduction in regional nightlight disparities. Moreover, treated villages experience significant improvements in air quality, largely attributable to decreased pollutant emissions from nearby thermal power plants. By elucidating the impacts of place-based renewable energy policies, this study underscores their potential to foster a more equitable energy transition.

Dr. Rong Ma is an Associate Professor at China Agricultural University, College of Economics and Management. He is also a former Visiting Fellow and Collaborator with the Harvard-China Project. He obtained his Ph.D. in Economics from Tsinghua University. His research focuses on environmental economics and energy economics.

Sponsored by the Harvard-China Project on Energy, Economy, and Environment at the Harvard John A. Paulson School of Engineering and Applied Sciences.