Abstract: Environmental regulation has been taken in our country to solve the environmental impacts produced by coal industry.The regulation period is divided into three phases,frame design phase,implementation phase and strengthen phase.The environmental regulation stimulates coal industry to innovation in many fields.Great breakthroughs have taken place in washing and processing technology,energy saving technology,green mining technology.As a special kind of industry,its product has little heterogeneity.So regulation measures should be improved to further stimulate innovation.