Research on the Impact of Large-Scale Photovoltaic Development on Regional Economic Growth—A Case Study of Qinghai Province

Zhun Qu () and Suchang Yang
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Zhun Qu: School of Economics, Lanzhou University, Lanzhou 730000, China
Suchang Yang: School of Economics, Lanzhou University, Lanzhou 730000, China

Sustainability, 2025, vol. 17, issue 11, 1-22

Abstract: Large-scale photovoltaic (PV) development has been widely promoted in northwest China and has yielded notable economic and industrial outcomes. However, the existing literature has not adequately examined the relationship between large-scale PV development and regional economic growth, particularly in high-altitude and ecologically fragile areas. This study selects eight prefecture-level cities in Qinghai Province from 2014 to 2023 and employs a static fixed-effects panel regression model to empirically investigate the association between solar PV generation and regional economic performance. The findings indicate a significant positive correlation between PV power generation and regional GDP, with clear regional heterogeneity. In developed regions, the association is stronger, while in less developed regions, the effect is positive but comparatively weaker. Furthermore, the analysis reveals a nonlinear (inverted U-shaped) relationship between PV generation and economic growth in less developed areas, with a critical threshold beyond which the marginal economic benefit declines. These results provide empirical insights into optimizing PV development strategies based on local economic conditions. Notably, the study focuses on identifying statistical associations rather than establishing causality.

Keywords: large-scale photovoltaic development; economic growth; panel model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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