The rapid economic growth experienced by the Chinese economy over the past three decades has led to severe environmental problems, including air pollution, water pollution, and rapidly growing carbon emissions. This chapter examines China's climate policy challenges with the support of econometric analysis and spatial techniques to contribute to the debate on China's contribution to pollution and environmental degradation. Between 2002 and 2012, Chinese carbon emissions increased by 158%, making China the world's most significant contributor to CO2 emissions. The effect of environmental regulation and R&D tax incentives on green product innovation from a disciplinary and incentive perspective has been examined by Song et al. When comparing 2014 and 2016 regarding coal consumption, there were visually no significant changes. Carbon intensity takes the Chinese currency into account, which indirectly reduces the effect of population.