Empirical Studies on Relationship between Environmental Regulation and Economic Development: In Case of the US 50 States in the years of 1988 and 1991

This study examines the relationship between economic growth and environmental regulation in US 50 state with multiple regression analysis. The results support revisionist’s view that the environmental regulation can stimulate economic growth and a better environmental at the same time. Especially the private environmental capital investment can cause economic growth. Additionally the state environmental expenditure related with economic growth negatively, and the private environmental operating cost related with dependent variable positively. But these two variables are statistically insignificant.