“…Currently, existing research on the assessment of the effects of environmental regulation is centred around environmental governance effects and the impact on economic development. It has been proved theoretically and empirically that market-incentivised environmental regulation effectively reduces carbon dioxide emissions (Hu et al, 2020;Chang et al, 2023). It is also able to have an impact on macroareas such as low-carbon development of the economy (Khaddage-Soboh et al, 2023;Wang et al, 2019), optimisation of industrial structure (Zhou et al, 2022), regional employment scale (Yang et al, 2020), poverty alleviation of the rural population (Zhang and Zhang, 2020), foreign direct investment (Shao et al, 2022), technological innovation and innovation spillovers of enterprises (Yang et al, 2023;Yu et al, 2023), enterprise total factor productivity (Wu and Wang, 2022), enterprise value (Luo et al, 2023), enterprise financial performance (Yu et al, 2022), and other micro subjects to have a positive impact.…”