Forestry is an effective way and important means to mitigate and adapt to climate change; however, forestry activities can not only sequester carbon but also release CO₂. It is therefore important to formulate carbon subsidy and carbon taxation policies on the basis of the price of carbon. In this study, a forestry-based Computable General Equilibrium (CGE) model is built by using input- output data of China in 2010 to construct a Social Accounting Matrix (SAM). The model simulates different carbon price scenarios, and explores the effects of carbon subsidy and carbon taxation policies on forestry economy. The main results can be summarized as follows: 1) When the price of carbon is set at 40 yuan/t, the carbon subsidy and carbon taxation policies would increase forestry output by 0.0067% (17.4 million yuan), forestry products price by 2.7%, value- added investment by 0.37% (657 million yuan), and decrease the residents' consumption by 11 million yuan. 2) When the price of carbon is set at 300 yuan/t, the policies would decrease forestry output by 0.019% (49 million yuan), forestry products price by 20.87%, and value-added investment by 0.45% (799 million yuan), but would increase the residents' consumption by 10 million yuan. The carbon price of 400 yuan/t tends to generate effects similar to those under the 300 yuan/t scenario. In light of these results, relevant suggested policies are proposed correspondingly.