Discount Rate of China’s New Energy Power Industry

Under the dual pressures of energy crisis and environmental pollution, China’s new power industry has become a focal point for management requires greater investment. In this context, as significant input investment projects, discount rate well-calibrated evaluation because projects are highly capital intensive. The main objective paper is to evaluate industry. First, we use Moving Average correct parameters asset pricing model (CAPM) weighted average cost capital, which extends literature on avoidance CAPM noise information problem. Second, study industry-level annual rates mainly industries, including hydropower, nuclear power, wind photovoltaic industries period 2014–2019. results show that in evolved differently between years 2014–2019 with being 7.56%, 5.83%, 5.60%, 8.64%, respectively. 2019, four were highest (8.66%), followed by hydropower (7.17%), (5.72%), (5.26%). Forecasting 2020 from 2019 base period, 6.37%, 5.00%, 6.57%, 9.05% different structures, their forecasts are, respectively, within [4.35%, 9.24%], [3.92%, 7.10%], [4.58%, 10.40%], [5.46%, 14.81%]. We also discussed more details structure forecast industries. Our analysis shows it necessary establish database steadily promote implementation policies.