Abstract：On the basis of literature reviews from the perspectives of environmental economics,innovation economics,strategic management theory and industrial organization theory,this paper absorbed the previous research results,and built an analysis framework to enhance the intrinsic motivation of SMEs' emission reduction through environmental policy tools and external network.It finds:the initiative of SMEs to adopt emission reduction strategy comes out of the benefits that emission reduction generated;the cost and benefit can be changed by the environmental regulation,and the disadvantages of the SMEs can be made up by access to the external network resource,therefore the competitiveness of the enterprises can be improved;a combination of environmental economic policy instruments and the external network resources can stimulate the SMEs to reduce emission voluntarily
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