Abstract Based on the dynamic econometric model, this paper takes the auto industry of China in 1999-2008 as example and empirically studies the impact of environmental policy, technological progress, market structure and industrial characteristics on environmental technology innovation from both product and process innovation. The result shows that: environment in environmental policy impacts on assessment system and pollution control system within a time limit, R&D investment and human capital in technological progress and product sales margins of market structure have long term equilibrium relationship with environmental technology innovation. And its longrun equilibrium has little effect on the shortterm fluctuations in product innovation other than the one of a pollution limit control and R&D investment. Meanwhile, environmental impact assessment system, R&D investment, human capital, product sales margins are all Granger causalities about product and process innovation, pollution within a time limit is Granger causality of product innovation, and process innovation is Granger causality the pollution of the deadline.
2012, Vol. 9 
