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Environmental problem has become an important constraint factors restricting the sustainable development of national economy, how to make environmental regulation and economic development level to reach a state of balance, has become a major problem faced in our country. This article Constructs Simultaneous Equations Model of Economic Growth and Environmental Regulation based on the building of economic growth and environmental regulation model, combined with Panel data of 16 districts and counties in Beijing from 2009 to 2014, makes the empirical analysis of the relationship between economic growth and environmental regulation. The results show that the present stage, the Beijing environmental regulation played a significant role in economic development. Economic growth inhibits the development of environmental regulation. The effect of technological innovation on economic growth is not significant, on environmental regulation directly effect is negative and the indirect effect is positive.
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