China's Carbon Emissions Pricing Options: Based On Black-Scholes Model Testing

摘要

In this paper, by analyzing the cause of the weak power for China's carbon emissions, we design the trading and OTC options contracts of China's carbon emissions. By testing we found that the pricing method can indeed improve the pricing power of carbon emissions and acquire more transactions in negotiations. The policy implications of this article: Firstly, China should combine with domestic and international progress to plan the framework of China's carbon emissions trading as soon as possible. Secondly, we also launch the research of carbon emissions trading market and experimental work; the third, establishing trading center with the market-oriented to guide China's implementation of greenhouse gas emission reduction projects and to achieve Low-cost emission.