The implementation of carbon pricing policy will have an important impact on the low-carbon transformation of power industry. This paper constructs a power dynamic stochastic general equilibrium(DSGE)model with carbon pricing policy

and systematically investigates the different impacts of carbon trading and carbon tax on emission reduction of the power industry under the goal of carbon emission peak and carbon neutrality. The results show that

the overall impact of carbon trading policy is greater than that of carbon tax policy

and the impact of carbon trading policy on emission reduction is achieved by inhibiting thermal power output under the carbon peak scenario

while it is achieved by encouraging green power output under the carbon neutral scenario. Different mechanism designs of carbon pricing policies

such as carbon trading and carbon tax

will have different impacts on emission reduction in the power industry under the dual carbon target. In the carbon trading policy

especially in the carbon peak scenario

there is a certain upper limit to achieve emission reduction through the market mechanism

and when the upper limit is exceeded

a “back-forcing” mechanism will be formed. In the carbon tax policy

the rebate mechanism will achieve the goal of emission reduction and the expansion of the rebate proportion will strengthen the impact on electricity emission reduction. Based on the above conclusions

relevant policy recommendations are put forward.