Sweet temptation or hidden trap: the welfare consequences of rural e-commerce platform for poverty reduction in China

The development of modern commodity distribution channels, epitomized by e-commerce, serves as a crucial mechanism for advancing rural poverty alleviation and fostering digital economic growth. Nevertheless, the extant literature lacks a comprehensive evaluation of the micro-economic implications of e-commerce-driven poverty alleviation initiatives. Therefore, this study aims to systematically evaluate the micro-economic impact of rural e-commerce policies on farm household welfare. Utilizing panel data from the China Family Panel Studies (CFPS) spanning 2010 to 2020, we employ the exogenous policy intervention of the ‘Comprehensive Demonstration of E-commerce in Rural Areas’ as a quasi-natural experiment to investigate its impact on the welfare dynamics of rural farmers with Staggered difference-in-differences (SDID) method. We show that, while rural e-commerce has indeed propelled an increase in farmers’ incomes, it has concurrently resulted in a decrement in their original earnings derived from productive endeavours. This effect is notably accentuated in regions characterized by underdeveloped transportation infrastructures and limited market accessibility. Further analysis indicates that the implementation of rural e-commerce policies has augmented farmers’ consumption expenditures and mortgage obligations, while concurrently diminishing their personal savings, thereby intensifying their vulnerability to risks. Our study offers insights for developing nations on leveraging e-commerce platforms to enhance poverty alleviation efforts. © 2025 Informa UK Limited, trading as Taylor & Francis Group.