Abstract

Since more than 40 years of the reform and opening up，China’s economy has kept rapid growth，the social and economic development has achieved remarkable results. China has become the second largest economy in the world，comprehensive national strength and world influence are also constantly improving，however，looking back to the development of more than 40 years，it is not difficult to see that，along with economic development，due to the reasons of growth mode and management mode，the mode of economic growth in China is still extensive growth，and the problems of environmental pollution and ecological damage brought about by it are embodied in a concentrated way. Especially，the environmental pollution in urban areas is getting worse and worse，which has seriously affected the normal life of residents. The report of the Nineteenth National Congress of the Communist Party of China has clearly pointed out that China’s economy has shifted from the high-speed growth stage to the high-quality development stage，and is in the key period of transforming the mode of development，optimizing the economic structure and transforming the driving force of growth. Faced with the new normal of economic development，in order to reduce energy consumption and prevent environmental pollution，our government should constantly strengthen the importance of environmental protection，environmental regulation means become more and more abundant，and researches on the evaluation of relevant policies are also increasing.

However，with the implementation and the improvement of intensity of environmental regulations，it will have a series of impacts on the economy and society，and the environmental efficiency will be lost to some extent. This requires a reform of the one-sided environmental protection concept that only focuses on reduction of pollutant discharge volume and energy consumption，optimizes and adjusts environmental regulation policy，promotes environmental regulation policy toward innovation orientation，promotes the integration of technological innovation and environmental policy，and encourages enterprises to implement green production technologies and environmental technology innovation. Through the research on the innovation and incentive of China’s environmental regulation policy，this book tries to seek a fusion and linkage mechanism between technological innovation and environmental regulation，which can not only improve the environmental conditions，but also take economic development and improvement of people’s livelihood into account，and explores the sustainable development path of harmony between the ecology，the economy and the people’s livelihood.

Combined with theoretical and empirical analysis，the main conclusions of this book are as follows.

Firstly，the equilibrium level of pollution is determined by both the government and the company’s behavior. If the regulatory agency has sufficient public law enforcement resources，and gives regulatory government enough incentives，then relying solely on government coercive forces will be able to cope with the pollution，otherwise，it must play a role of various social forces.

Secondly，the empirical analysis shows that，no matter from the perspective of the industry or from a regional perspective，the effect of environmental regulation on technological innovation is a “U” curve，but there are significant differences between different industries and regions，so it is necessary to use a variety of regulatory tools flexibly and make dynamic adjustments. At the same time，the government also needs to coordinate environmental regulation policy and technology policy，achieve the complementarity of implementation and categories of technology policy and environmental regulation policy，and make innovation policy form a useful complement to environmental regulation policy.

Thirdly，based on the theoretical and empirical analysis results，this book puts forward the viewpoint of “innovation-oriented environmental regulation policy”，which is also the original innovation point. At present，we have observed the integration of innovation policy with economic policy and energy policy，the integration of innovation policy and environmental policy will also become a development trend. Therefore，it is necessary to provide companies with internal incentives，external incentives and other innovation driving forces.

Keywords：Environmental Regulation；Innovation；Incentive；Game