Open AccessA credit risk evaluation based on intuitionistic fuzzy set theory for the sustainable development of electricity retailing companies in China
Author(s) -
De Gejirifu,
Tan Zhongfu,
Li Menglu,
Huang Lilin,
Wang Qiang,
Li Huanhuan
Publication year - 2019
Publication title -
energy science and engineering
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.638
H-Index - 29
ISSN - 2050-0505
DOI - 10.1002/ese3.464
Subject(s) - credit risk , electricity , analytic hierarchy process , database transaction , business , order (exchange) , fuzzy set , fuzzy logic , sustainable development , actuarial science , risk analysis (engineering) , computer science , finance , operations research , artificial intelligence , engineering , law , political science , electrical engineering , programming language
As China's power market becomes more orderly, electricity retailing companies are influenced by multiple factors restricting their healthy, stable, and sustainable development. This paper explores these issues through four dimensions, the external basic environment, operating credit risk, financial credit risk, and transaction credit risk, and determines the credit risk evaluation index system, which includes 22 factors relevant to electricity retailing companies. To achieve this, this paper utilizes the characteristics of the intuitionistic fuzzy set theory and, in an uncertain environment, the proposed credit risk assessment model based on the intuitionistic fuzzy analytic hierarchy process (IFAHP). In order to improve the identification degree of the credit risk evaluation of electricity retailing companies, a penalty factor is introduced into the model, and the variable weight mechanism of dynamic adjustment hesitancy is proposed. Finally, we select five electricity retailing companies and use different evaluation methods to conduct a comprehensive credit risk evaluation, so as to improve the credit risk level of electricity retailing companies.