Study of Carbon Emissions Trading Based on Options Theory

Carbon emissions trading is an effective way to solve the problem of greenhouse gases. The carbon trading market has experienced a fast expansion in transaction scale and become an important commodity market in the world. This paper puts forward the concept of options of carbon emissions and introduces the options into the elements of carbon emissions trading. The introduction of options theory in carbon emissions trading can effectively reduce the risks of trading, which provides new research ideas and directions for carbon emissions trading of China.