Modern Economics & Management Forum

Energy conservation and environmental protection industry policies are a major strategy for the development of China's national economy, and have gradually become the main driving force for promoting scientific and technological progress and optimizing industrial structure in China. Against the backdrop of increasing awareness of environmental protection in China, the energy and environmental protection industries have gradually embarked on the path of technological innovation. The research results show that China's relevant industrial development strategies encourage enterprises to implement green technology innovation on the one hand, and are also important factors in promoting industrial development on the other hand. On this basis, through the study of the mutual influence between policy environment, enterprise demand, and technological innovation, it is concluded that China's energy-saving and environmental policies have created strong innovation momentum for enterprises from the aspects of taxation, taxation, technology, and market.