Carbon　neutrality　achievement　has　had　a　major　transformative　effect　on　the　economic　and　social　development　of　countries　and　regions.　Therefore,　this　study　focuses　on　analyzing　the　effectiveness　of　environmental　regulation　policies　in　promoting　institutional　dividends　and　seeks　to　examine　the　relationship　between　environmental　regulatory　policies　and　green　innovation　development　through　the　lens　of　green　patents.　Panel　data　from　industrial　enterprises　listed　in　Shanghai　and　Shenzhen　from　2010　to　2019　were　used　in　this　research,　which　employed　fixed-effect　and　media-effect　models　to　investigate　the　impacts　and　mechanisms　of　various　types　of　environmental　regulatory　tools　on　corporate　green　innovation.　The　results　showed　that　different　types　of　environmental　regulation　tools　have　varying　effects　on　corporate　green　innovation.　Specifically,　command-based　and　market-oriented　environmental　regulations　have　a　positive　＂U-shaped＂impact,　whereas　voluntary　environmental　regulations　have　an　inverted　＂U-shaped＂impact.　Furthermore,　it　was　found　that　the　＂innovation　compensation　effect＂generated　by　the　implementation　of　environmental　regulation　policies　has　a　greater　positive　impact　than　the　negative　impact　of　the　＂compliance　cost　effect.＂Additionally,　geographical　location　and　enterprise　ownership　play　a　role　in　determining　the　impact　of　environmental　regulations　on　corporate　green　innovation.　These　findings　emphasize　the　importance　of　strengthening　environmental　regulatory　policies　to　achieve　regional　carbon-neutral　development.　Our　research　provides　recommendations　and　ideas　for　better　achieving　this　goal.　(c)　2023　Economic　Society　of　Australia,　Queensland.　Published　by　Elsevier　B.V.　All　rights　reserved.