In　recent　years,　China　has　accelerated　its　urbanization　and　industrialization　processes.　The　traditional　extensive　economic　growth　mode　of　high　investments,　high　energy　consumption,　and　high　emissions　has　brought　irreversible　negative　impacts　on　the　ecological　environment.　Environmental　regulation　can　promote　necessary　changes　in　the　industrial　structure　and　improve　economic　structure　by　eliminating　the　negative　externalities　of　environmental　pollution　and　enhancing　social　welfare.　With　time　series　data　of　Beijing　from　1998　to　2017,　the　mechanism　and　impact　of　environmental　regulations　on　industrial　structure　were　analysed　using　cointegration　analysis　and　Granger　causality　test.　Results　show　that　environmental　regulations　can　effectively　realize　industrial　structure　upgrading　by　inhibiting　the　development　of　high-pollution　enterprises,　accelerating　the　development　of　the　service　industry,　promoting　the　environmental　protection　of　enterprise　production　technology,　and　promoting　the　optimization　of　investment　structures.　Thus,　a　long-term　and　positive　equilibrium　relationship　between　industrial　structure　upgrading　and　environmental　regulation　in　Beijing　can　be　achieved.　The　investment　in　industrial　pollution　control　per　unit　can　drive　the　growth　of　the　tertiary　industry’s　added　value　by　0.017　units.　The　completion　of　industrial　pollution　control　investment　is　the　one-way　Granger　reason　for　the　tertiary　industry’s　added　value　to　the　proportion　of　gross　domestic　product.　The　conclusions　have　a　certain　reference　value　for　finding　out　the　intensity　of　environmental　regulation　in　promoting　Beijing’s　industrial　structure　optimization　and　realizing　the　transformation　of　economic　structure　and　coordinated　development　of　ecological　civilization　construction.　©　2019　Technoscience　Publications.　All　Rights　Reserved.