Peifeng Cai ¹ Jing Wang ^2*

• ¹ Peking University, Beijing, Beijing Municipality, China
• ² Zhongnan University of Economics and Law, Wuhan, China

As economic development accelerates and ecological pressures intensify, green transformation has become a global focal point. In China, diverse environmental regulations play a crucial role in promoting the green economy, but the effects and mechanisms of their interaction remain insufficiently explored. This study aims to examine how different types of environmental regulations interact with the green economic efficiency of prefecture-level cities in China. Using panel data from 251 prefecture-level cities between 2015 and 2022, the study employs a double fixed-effects model to empirically analyze the effects of three types of environmental regulations: command-and-control, market incentives, and public participation. The findings indicate that command-and-control regulation has an inverted U-shaped effect on green economic efficiency. Initially, it significantly promotes efficiency, but excessive regulation leads to a decline in efficiency. Market-based incentives, on the other hand, show a U-shaped relationship, where they initially suppress efficiency but gradually promote it over time. Public participation in environmental regulation has a linear positive effect on green economic efficiency. Additionally, when public participation in environmental regulation interacts with command-and-control (PE×SE=0.317, P<0.01) and market incentives (ME×SE=0.153, P<0.05), it significantly enhances the overall regulatory impact on green economic efficiency. This study highlights the complex and multifaceted effects of individual environmental regulations on green economic efficiency, emphasizing the necessity and effectiveness of combining various regulatory approaches. It provides both theoretical support and empirical evidence for the development of more scientifically informed and effective environmental policies.