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Abstract The promotion of sustainability and innovation in the current dynamic landscape of global industry in the context of climate change has become imperative. This research paper explores the critical role of policy interventions in facilitating the diffusion of low‐carbon technologies through intricate supply networks. As countries endeavor to meet environmental goals and transition to a more sustainable economy, it becomes critical to understand how policies can effectively shape the diffusion of these technologies through the supply chain. This study employs game theory and evolutionary game theory to investigate the intricate interactions within supply networks, with a particular focus on the nuanced effects of policy on the diffusion of low‐carbon technology innovations. The findings suggest that dynamically adjusted policies have the potential to significantly increase the uptake of low‐carbon technologies. In particular, an effective subsidy scheme not only promotes the diffusion of innovations, but also demonstrates the ability of government subsidies to be distributed efficiently. In addition, the implementation of dynamic carbon trading schemes is considered to be an important mechanism for promoting firms' decarbonization and stabilizing strategic decision‐making processes within firms. This study highlights the significance of tailored dynamic policy frameworks in promoting the adoption of sustainable technologies in supply chains, thus making a significant contribution to the broader goal of achieving a sustainable future.
Wang et al. (Sun,) studied this question.