Carbon market trading is an important means for high-emission thermal power enterprises to achieve carbon compliance and low-carbon development

and it is of great significance to study the mutual transmission and evolution mechanism of carbon price and electricity price in the two markets for enterprises to participate in the formulation of trading strategies in carbon and electricity markets. The causal relationship of the factors between the two markets is analyzed by studying the participation of thermal power enterprises in carbon emission trading and electricity market trading

and a system dynamics simulation model is constructed for thermal power enterprises to participate in carbon and electricity market trading. On this basis

the transmission and evolution mechanism of carbon price and electricity price between the two markets are studied

and the impact of electricity demand and government free quota policy on electricity price and carbon price is analyzed. The results show that carbon price and electricity price in the two markets generally show an evolution process of low maintenance-rapid increase-high level

and when the power demand is high

the introduction of carbon and electricity coupling market is conducive to guiding thermal power enterprises to invest in emission reduction technologies or transform to low-carbon energy power generation. Increasing the proportion of free quota gaps through policies can effectively play the role of carbon prices in guiding low-carbon emission reduction signals for thermal power enterprises.