The heat generated within thermoplastic carbon composite laminates during induction welding can be attributed to one, or a combination of the three heating mechanisms discussed in the literature: (i) Joule heating of fibers; (ii) Joule and/or dielectric heating of polymer; and (iii) fiber-to-fiber contact resistance heating. The answer to the question, which of the three heating mechanisms is most dominant, remains open. This research aims to provide an answer to this question through finite element simulations using both an in-house developed numerical Whitney-elements based toolbox for induction welding simulations (WelDone), and the commercially available software, ANSYS Maxwell. The simulations are done at two levels; first, using WelDone laminate-level simulations are performed to see in which direction: fiber-, transverse to the fiber-, or thickness direction, most of the heat was generated; and second, ANSYS Maxwell was used to simulate the solid loss on a microscopic, inside fiber and resin, level with and without the presence of resin. In the latter series of simulations, contact between fibers in different layers was explicitly modeled. The numerical simulations revealed that on the laminate-level most heat is generated in the fiber- and thickness directions. The former coincides with Joule heating of fibers, while the latter can be attributed to either Joule heating of polymer and fiber-to-fiber contact resistance heating, or both. The fiber level simulations, however, revealed that both fiber-to-fiber contact and no-fiber-to-fiber contact conditions have a significantly small effect on the solid loss compared to presence of resin. Based on the latter, the heat generation in the thickness direction was attributed to a second heating mechanism; Joule heating of polymer. It must be noted that the dielectric heating of polymer was ignored due to the relatively low operating frequency at which induction welding takes place.