Under the background of "carbon peaking and carbon neutralization"

it is necessary for the construction of China's power market to fully consider the rapid development of new energy and the need for low-carbon emission reduction. It is urgent to clarify the economic relationship between the power and carbon markets and study the transmission effect of carbon costs to electricity prices. To address this issue

a qualitative analysis of the interaction mechanism between the power and carbon markets is first conducted

concluding that carbon emission costs will ultimately be passed on to power purchasers in the form of electricity prices. Using the Cournot equilibrium model

the formula for the transmission of carbon costs to electricity prices is derived

leading to the conclusion that the transmission rate of regional carbon prices to electricity prices needs to be calculated based on the elasticity of the slope of the electricity inverse demand function. Subsequently

a multiple linear regression model is used to construct the regional electricity demand function

enabling the regional carbon cost transmission rate to be implemented at the data level. Finally

through a case study using data from seven carbon pilot regions as samples

the price elasticity of electricity demand for both regional and national levels is obtained

and the carbon cost transmission functions for each region are estimated.