The Civil Code introduces punitive damages for environmental infringement, reflecting private law's response to ecological protection. However, this deviates from the principle of full compensation, causing issues like confusion in legal interest hierarchy, overlapping responsibilities, and inconsistent judgments, thus challenging China's public-private law dichotomy. The restrictive application theory emphasizes integrating punitive functions within private law, countering denials centered on unjust enrichment, and highlighting differing objectives between public and private laws. Practically, due to negative consequences, insufficient oversight, and varying proof standards, this theory limits the "private enforcement" function, advocating restrained use of punitive damages for balanced protection. Its theoretical core treats punitive damages as exceptions, explicitly presented through a civil-administrative-criminal disciplinary system, while incorporating private law factors. The principle of "strictness in public interest, moderation in private interest" prevents legal hierarchy confusion, while a non-overlapping model based on liability priority, limits, and payment sequence avoids excessive punishment. Measures such as liability ceilings and alternative penalties further prevent unjust outcomes, collectively seeking institutional compatibility between public and private law. |