Abstract:This paper explores the choices and changes of the dependence of strategies between the government and enterprises using signal game theory.According to the above and influential factors of energy conservation and emission reduction,we establish a dynamic equation.First,we determine the sufficient condition for a_x005fchieving the state of equilibrium under the circumstance of complete success according to the benefits of differ_x005fent parties.Then,taking the separating equilibrium as the initial state,we explore the constraints to keep that condition continuously stable with the help of stochastic differential equation.Based on the theoretical model constructed,we analyze the amount of subsidies,illegal costs and loss of enthusiasm dampened and do numerical simulation to verify the validity of the model with the help of Matlab software to provide theoretical references and guidances on improving the effect of emission reduction efficiently.