【正文】 ent is concerned, Now it faces with two enormous pressures: one is from domestic pressures. Rapid industrialization and urbanization, with largescale consumption of natural resources, have caused great domestic environmental pressures. Another is from international pressures. With heightening China’s international status, the numbers and coverage of international environmental conventions that China signs, will be expanding, thus China will take on more international environmental obligations.Domestic and international environmental pressures push China to strengthen the stringency of environmental governance. At the same time, the international environment of China’s development is plicated and variable. This would generate the worries on Chinese economic growth. Would environmental regulation affect China’s economic growth, thereby weakening China’s economic strength? In order to find the problem, it is of great theoretical and practical significance to research the impacts of environmental regulation on China’s economic growth, and to explore a balanced development pattern, which can achieve patible mode of economic growth and environmental protection.Environmental pollution is a “bad” public product, and it has strong negative external effects. On the basis of externality and economic growth theories, the paper analyzes the mechanism of environmental regulation. Environmental regulation doesn’t eliminate pollution, and constraint economic growth, but will control pollution under the carrying limits of the ecosystem to achieve the coordinated development of environment and economy. According to the definition of the target, environmental regulation, from the enterprise’s point of view, exerts the impacts on enterprise’s economic performance through direct and indirect transitive (environmental performance) mechanism. Either transitive mechanism brings the cost to the enterprise, in the meantime it brings the potential benefits (business opportunities). These benefit and costs cause the net effects (. change in output, productivity changes) to the enterprise. The sum of all enterprises’ net effects in the same sector forms the sector’s net impacts, further these constitute the country’s or region’s ultimate outes. From the perspectives of sector and region or country level, the net economic effect of environmental regulation can be represented as related indicators such as productivity, technological innovation and industrial petitiveness. These indicators not only reflect economic quality and efficiency of a sector and country (or region), but also are monly used and most important economic indicators in the literature. Because of positive and negative impacts of environmental regulation on economy, only through prehensive investigation of various factors, can we make the correct inference and explanation on the ultimate impacts of environmental regulation on sector’s and regional or national performance.Basing on the background of the practices of China’s environmental regulation, the paper attempt to answer the question, . what are exactly the impacts of environmental regulation on China’s economic growth?, by China’s provincial panel data and empirical methods. Considering the plex of the net impacts of environmental regulation on economies and the flaws of single indicators, we measure the net effects of environmental regulation, by using various methods and from different points of view. As far as sector and region or country is concerned, the net effects are examined by using indicators such as productivity, technological innovation and industrial petitiveness. According empirical analytical results, we find the following main conclusions:First, China’s environmental regulation doesn’t hinder economic growth, instead the racetothebottom of environmental standards will impede the sound economic development. Empirical results show that on average regulatory strength of sulphur dioxide is increased by 1%, efficiency change and technological change are increased by % and % respectively, thus productivity will improve by %. However enhancing regulatory intensity of industrial chemical oxygen demand (COD) will be not conducive to the efficiency of economic growth, which doesn’t mean that the race to the bottom of COD environmental standards could bring about higher efficiency of economic growth, because the negative effects are not caused by environmental regulation itself, but done by the mismatches of environmental governance strategy. Quantile analysis further shows that the environmental regulation petition in sulphur dioxides generally isn’t conducive to productivity growth and efficiency change, and its impact on technological change is relatively plicated and variable. When regulatory strength of sulfur dioxides moves towards high quantile points, negative impact on productivity growth tends to rise, and that on efficiency change gradually weakens. Regulatory petition in industrial chemical oxygen demand has positive impact on productivity growth and efficiency change, and with the loser the regulation intensity, the smaller the positive impact. The directions of impact on technological change vary with different quantile points.Second. China’s environmental regulation significantly promotes environmental technology innovation, however it causes adverse effects on the overall technological innovation activities. When the number of three kinds of domestic patents granted is measured as the overall technological innovation, twostep generalized method of moments estimates show that in the period I, , the coefficient of current environmental variable on average is , the coefficient of lagged one on average is , and these are not significant。 secondly, Heighten effectiveness and efficiency of environmental policy implementation。 Fourthly, Clear powers and responsibilities of central and local governments’ environmental protection。 Environmental regulation。 Policy d