<p>The global structure of energy consumption is undergoing a profound transformation, with countries increasingly committed to transitioning to green, low-carbon energy sources. In this context, environmental regulation has emerged as an essential tool through which governments globally promote the decarbonisation of energy consumption patterns. This study examines whether heterogeneous environmental regulation has effectively promoted the clean transformation of China’s energy consumption structure. Referring to Acemoglu (2012), we develop a two-sector model that includes both clean and traditional energy sectors to explore the theoretical impact of heterogeneous environmental regulation. Subsequently, using provincial panel data from 2007 to 2020 in China, we apply fixed effects and difference-in-differences methods to test the effects empirically. Through a combined theoretical and empirical approach, we find that command-and-control environmental regulations have limited substitution and decarbonisation effects on energy consumption due to regional resource endowments and economic development levels. In contrast, market-incentive environmental regulations significantly reduce the share of coal consumption, enhance the substitution effect of clean energy over dirty energy, and notably improve the decarbonisation index of the energy consumption structure. This study offers theoretical insights and empirical evidence to support policymakers in using heterogeneous environmental regulations to facilitate the restructuring of energy consumption patterns.</p>