Exploring the impact mechanisms of the green innovation policy instruments system: a system dynamics approach

Green innovation is crucial to driving the global low-carbon transition, and to promote its development, a range of intervention policies are necessary. However, these policies interact in complex ways, and despite increased attention on the topic, research on their individual and combined impact has produced inconsistent findings. Existing studies often oversimplify the relationships between different systems, neglecting the dynamic influences and pathways involved. A system dynamics approach is used to analyze the effects of various green innovation policy instruments and their combinations. A theoretical and system dynamics model of public policy support for green innovation is constructed to explore the dynamic effects of different green innovation policy tools on the system. By simulating the impact of different policy tools and combinations, their effectiveness is compared. The research finds that demand-based policy instruments have the most significant effect on green innovation under single policy scenarios, but policy mix implementation is more effective. A theoretical basis for green innovation policies is provided, along with guidance for the government to formulate and optimize them.