Currently,　China　is　facing　severe　pressure　of　environmental　emission　reduction.　As　a　kind　of　clean　energy,　waste-to-energy　technology　has　the　advantages　of　renewability,　low　pollution,　and　stable　supply.　To　establish　an　affordable,　effective,　and　sustainable　waste　disposable　method　is　critical　for　the　low　carbon　society　transition.　Therefore,　the　innovation　diffusion　of　waste　incineration　power　technology　is　a　problem　worth　studying.　Based　on　this,　in　order　to　answer　this　question　scientifically,　this　paper　constructs　a　system　dynamics　model　of　innovative　diffusion,　and　analyzes　the　internal　mechanism　of　innovation　diffusion.　The　results　show　that　firstly,　the　government　support　policies　have　a　positive　influence　on　the　innovation　and　diffusion　of　waste　incineration　power　technology;　secondly,　compared　with　the　R&D　policy,　feed-in　tariffs　policy　is　more　efficient　to　expand　the　installed　capacity　of　waste　incineration　power;　At　last,　technological　innovation　caused　by　government　support　policies　is　the　main　driving　force　of　waste　incineration　power　industry　investment　cost　reduction.