Abstract: Abstract: Achieving the 'dual-carbon' goal requires a top-level policy design that balances development and low-carbon. Policy innovation is crucial in realising the dual-wheel drive of the government and the market.Based on the panel data of Chinese listed companies from 2005 to 2018, this paper takes the dual pilot of carbon trading policies and top-10,000 energy?consuming enterprises program as a quasi-natural experiment, and explores the impact and mechanism of policy linkage on the carbon performance of enterprises from the perspective of the synergy between government-commanded and market-incentivised environmental regulation using dual machine learning. The empirical study demonstrates that:① the combination of government-mandated environmental regulations and market-driven incentives can effectively enhance the carbon performance of enterprises. The dual-pilot policy proves to be more effective in achieving the coupled governance of environmental protection and economic development compared to the single-pilot policy. ②Mechanism studies indicate that the dual-pilot policy is effective in mitigating the efficiency impacts of single-policy command-line environmental regulation. This is achieved through compensatory green innovation, mitigation of market distortions, and improvement of corporate financial performance. ③Heterogeneity studies indicate that the dual-pilot policy has a more pronounced promotional effect on the level of carbon performance in technology-intensive, capital-intensive, and high-polluting industries. Additionally, the policy has a greater impact on large-scale, high-growth firms with a good foundation for green innovation. This paper presents a new perspective on exploring the impact of heterogeneous environmental regulatory policy synergies on firms' green transformation. It provides micro-empirical evidence for governments to carry out environmental policy innovation.

Key words: Key words Government-Commanded Environmental Regulation, Market-Incentivised Environmental Regulation, Policy Linkages, Carbon Performance