By constructing three game-theory models—one without government subsidies, one with equal distribution of corporate profits and consumer welfare by the government, and one with weighted objective with proportional weights—this study aims to explore how to formulate effective subsidy policies and determine reasonable subsidy levels to promote the market adoption of green innovative products. The findings reveal that changes in social welfare are not monotonic in the subsidy level; when consumers’ anxiety levels are either low or high, subsidies should be increased to incentivize purchases, whereas when anxiety is at a medium level, subsidies should be reduced. Subsidies can effectively guide consumers to switch from traditional products to green innovative products when anxiety is low or moderate, but their effectiveness is limited under high anxiety levels. If the government places greater emphasis on corporate profits, it is more conducive to the market promotion of green innovative products.