Proceedings of the 2022 International Conference on mathematical statistics and economic analysis (MSEA 2022)

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Research on the Risk Premium and Growth Opportunities of the Chinese Green Energy Industry—Based on CAPM and Mean-variance Analysis

Authors
Yufan Yang1, *
1University of Leicester, UK
*Corresponding author. Email: 15028662695@163.com
Corresponding Author
Yufan Yang
Available Online 29 December 2022.
DOI
10.2991/978-94-6463-042-8_109How to use a DOI?
Keywords
Risk premium; Green energy; Supply chain; Risk factors
Abstract

At present, the development of green energy industry is receiving more and more attention in China. This paper uses mathematical statistics and economic analysis to explore the law of green economic development and improve the ability to avoid risks. Considering the high-risk premium as a signal of the high price volatility of the green energy stock leads to a conclusion that the green energy investment is risky. CAPM and mean-variance analysis are effective to measure the industry risk premium that works on the data from the past performance of the green energy portfolio. Using CAPM and mean-variance analysis can help us understand the risk premium and growth opportunities of Chinese green energy industry more concretely. As the results show that the beta of the risk premium of the green energy industry is 0.976, thus the industry risk premium is approximately 5.48% at the end of 2021. Policy factors are mentioned to help the further estimate of the industry risk premium.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 International Conference on mathematical statistics and economic analysis (MSEA 2022)
Series
Advances in Computer Science Research
Publication Date
29 December 2022
ISBN
10.2991/978-94-6463-042-8_109
ISSN
2352-538X
DOI
10.2991/978-94-6463-042-8_109How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yufan Yang
PY  - 2022
DA  - 2022/12/29
TI  - Research on the Risk Premium and Growth Opportunities of the Chinese Green Energy Industry—Based on CAPM and Mean-variance Analysis
BT  - Proceedings of the 2022 International Conference on mathematical statistics and economic analysis (MSEA 2022)
PB  - Atlantis Press
SP  - 763
EP  - 769
SN  - 2352-538X
UR  - https://doi.org/10.2991/978-94-6463-042-8_109
DO  - 10.2991/978-94-6463-042-8_109
ID  - Yang2022
ER  -