Abstract: The traditional view of New Classical Economics is that environmental regulation will lead to the increase of the cost of enterprises, but “Porter Hypothesis” considers that a reasonable set of environmental regulation policy can stimulate the enterprises to carry out ecological innovation, generate innovation compensation effect, improve enterprise performance, so as to make the enterprises gain competitive advantages. Based on the conflict between “Porter Hypothesis” and the New Classical Economics, this paper uses 3024 panel data of 42 mineral resources listed companies in Shanghai and Shenzhen stock markets from 2010 to 2015 and conducts the empirical research on the relationship among environmental regulation, ecological innovation and enterprise competitiveness. The results show that environmental regulation has incentive effects on the ecological innovation of enterprises in the short term; enterprises with ecological innovation can promote the competitiveness, and ecological innovation can promote the enterprise competitiveness, but the influence of environmental regulation has lag effect. The above conclusions will provide reference for the promotion of ecological innovation and enterprise competitiveness, and provide the theoretical basis for the government departments to formulate effective environmental regulation policies.

Key words: environmental regulation, ecological innovation, enterprise competitiveness, Potter Hypothesis