The value realization of eco-products is to intervene in the behavior of suppliers through policy instruments, and to make decisions that are in line with private and public interests. In order to explore the role of government and market in policy intervention, the policy instruments are divided into market-based instruments and non-market-based instruments. We also analyze the intervention methods and define the scope of application. To further explore the theoretical evidence and practical effects of the instruments, the benefit flows and property rights matrix is introduced around the legitimacy under the current system (in the public interest and gaining wider social acceptance). According to the distribution of benefits between public & private and the scope of property rights obligations, the principles of policy intervention are mainly divided into four categories:polluter pays, beneficiary pays, structure adjustment, and capacity building. The legitimacy analysis of existing policy instruments is carried out based on the matrix framework. The efforts will not only contribute to the in-depth understanding of policy instruments, but also help policy makers' scientific decision-making. Through establishment of a right incentive mechanism to solve market failures, the transformation of "lucid waters and lush mountains" to "invaluable assets" will be realized.