This article proposes a model of eco-innovation that emphasizes the role of users and regulation in the development and diffusion of eco-innovationproducts, by comparing the diffusion of two e-bike companies, CEP and Lvyan, from China and France.

These cases show that diffusion of eco-innovation in China and France is strongly linked to the institutional context and specific consumer needs, highlighting the importance of involving users in the development and diffusion of eco-innovation in order to satisfy market demand, and increase profit and competitiveness in niche markets. It also shows that, to achieve a comprehensive picture, institutions and policy makers should adopt a coevolutionary approach to regulation that includes consideration of technology, uses and practices.

The case of CEP reveals that regulation appropriate to the market fosterscompanies‟eco-innovation;compared to the case of Lvyan which shows that irrelevant regulation can become a barrier to the diffusion of eco-innovations such as the e-bikes.

The superior„ snob effects‟ of the French market are discussed and compared with the„ bandwagons effects‟ noted in the Chinese market.