Abstract: Based on Chinese provincial dynamic panel data from 1998 to 2012, and through the improved entropy method, the paper calculated the comprehensive index of environmental pollution, used the system of generalized moment estimator(GMM)to carry empirical study of the local government competition's influence on the environmental pollution effect. Results show that the local government competition has significant positive effects on the pollution to the environment. Local government competition significantly increases the area pollution emissions, and reduces the regional environmental quality. The economic development level, capital stock and the environment pollution have an inverted“U”shaped relationship. Short-term economic development brings environmental pollution, but in the long run helps to improve environmental quality. Capital determines the investment ability the hastiness or slowness of which will affect the environment. In the end, we propose that we should reform the traditional performance evaluation methods, and establish the system of local government environmental responsibility for the optimization of local government competition mechanism. At the same time, we should further increase investment in environmental governance of local government, to solve the problem of environmental pollution and improve the quality of environment.