Adverse Choice Analysis on Chinese Renewable Energy Power Generation Construction

Chinese Renewable energy Power Generation Construction (RPGC) is undergoing a rapid flourish nowadays, so a large amount of projects need to be contracted to engineer procure construct enterprises, namely EPC enterprises. However, high-level EPC enterprises always outsource specific activities to various vendors simultaneously, thus resulting in many outsourcing risks with regard to contract due to the underdeveloped Chinese RPGC outsourcing market mechanism. Based on the analysis of Chinese RPGC outsourcing market's features, an index evaluation system of vendor’s comprehensive ability is built up to help select the most suitable vendor, therefore reducing adverse choice risk. Moreover, with decrease of Chinese RPGC developing speed and gradual maturity of market, risks that EPC enterprises encounter will undoubtedly transmit and change, which are the risks requiring further research.