As the new power system gradually transforms into a low-carbon, high-efficient, and intelligent system, generation and consumption markets are being integrated into a unified energy market. To solve the problems of low market penetration and low trading market activity of carbon labeled products, a market equilibrium strategy for carbon labeled products based on system dynamics is proposed. First, a Stackelberg game model based on system dynamics is adopted, combined with an environmental utility subsidy mechanism, with the goal of maximizing the interests of both buyers and sellers. Secondly, through simulation analysis and the support of Vensim software, a stock flow chart of a carbon labeled product consumption market is designed to examine the impact of factors such as environmental utility, demand, government subsidies, and product prices on the game results. Then, by understanding the impact of these factors, effective strategies are formulated to promote the popularization and market activity of carbon labeled products, providing important support and a decision-making basis for the development of this market. Finally, the simulation results using a system dynamics model show that through case analysis the model can clearly identify consumer purchasing preferences for products and reveal the key influencing factors for sellers to independently update carbon reduction technologies, providing a comprehensive analysis for studying the dynamic changes in the carbon labeled product market.