Intheanalysisofhowenvironmentalregulationaffectsthecomparativeadvantageoftrade,existingliteratureignoresindustry’sinherentheterogeneity,whichdrawsremarkablydifferentconclusions.Inviewofthis,thepaperanalyzedthemechanismofenvironmentalregulationontheexportqualityofdifferentindustriesfromtheperspectiveoffactorinputstructureheterogeneity.BasedonthepaneldataofChina’smanufacturingindustry,thepaperusedthesystemgeneralizedmethodofmomentsmethodtoexaminetheheterogeneityinfluenceofenvironmentalregulationonmanufacturingexportquality.Thestudyfoundthat,first,environmentalregulationaffectedtheexportqualityupgradeofthemanufacturingsectorthroughoffseteffectandcompensationeffect,andthedirectionoftheimpactwouldmainlydependontheindustry’sfactorinputstructure.Second,forindustrieswithlargerfixed-assetinvestment(FAI)ratiointhefactorinputstructure,thecurrentenvironmentalregulationpolicywasnotconducivetotheexportqualityupgradingoftheindustries.However,therewasasignificantU-shapeddynamicrelationshipbetweenthem.Asenvironmentalregulationsbecamestricter,whenregulatorystringencywentbeyondtheinflectionpoint,thepolicywouldpromotetheupgradingofexportquality.ButforindustrieswithsmallerproportionofFAI,environmentalregulationexertedafavorableimpactontheexportqualityupgrade,followingaJ-shapedmarginalgrowthcurve.Third,forindustrieswithdifferentfactorinputstructure,theirexportqualityhadbeeneffectivelyupgradedasexpectedbyfactorslikehumancapitalinvestment,independentR&D,technologyintroduction,andforeigndirectinvestment;butraisingpercapitacapitalstockandexpandingenterprisesizedidnotproducesignificantdirectimpactonexportqualityupgrade.Theseconclusionsremainedrobustafterusingdifferentmeasurementmethodsandreplacingwithothervariables.Therefore,thispapersuggeststhatgovernmentsshouldt
