Abstract:Using the data of provincial units of China from 2000-2011, this paper empirically analyzes the impacts of environmental regulations on technological innovation, the impacts of technological innovation induced by environmental regulations on total factor productivity(TFP) and the direct impacts of environmental regulations on total factor productivity. Empirical results show that the environmental regulations have enhanced the level of technological innovation in China, “Porter Hypothesis” establishes in China. Compared with wasted gas and wastes, industrial wasted water abatement investment promotes China’s technological innovation most; the impacts of R&D expenditure induced by non-environmental regulations on total factor productivity(TFP) is greater than that by environmental regulations; the impacts of two-year lag environmental regulations on total factor productivity(TFP) is weaker than that of one-year lag, “Porter Hypothesis” has time constraint in China.