Abstract: Governing smog efficiently and economically has become a common goal for the whole society.The central and local governments have established a series of regulatory tools to avoid the failure of traditional environmental policies.To test the efficiency of these regulatory tools, central and local governments were selected to be actors to construct an evolutionary game model.Then, the optimal regulation strategies were deduced from the optimal regulation effectiveness and the optimal regulation intensity.The results showed that it is necessary to bring in the central government's regulations on governing smog, which includes allocating costs and supplying public funds.The central and local governments have different regulation strategies.At the central government level, the best way to use the special fund for smog governance is to ensure a diminishing marginal subsidy relationship between the amount of funds subsidy(F) and the local government's demand(p).At the local government level, local governments should not adopt policies to severely punish the enterprises which have excess emissions.The alternative regulatory tool is to increase the environment tax(t) and decrease the marginal emission cost TC_p3'(p₃).