In the process of economic development, environmental regulations directly or indirectly affect the production and operation of enterprises, technological innovation, and industrial structure. Based on the fully drawing on the existing research results in the field of green economy at home and abroad,and the reality of economic transformation, the path and mechanism of environmental regulation promoting green and low-carbon development is studied from the perspective of technological innovation effect, investment and financing effect, and industrial transfer effect,.The reasonable and feasible improvement opinions are put forward.The study has an important guiding role in predicting the future direction of national economic development and promoting industrial transformation.