| The 25 years ever since the implementation of the Reform and Open-door policy is a period when China has witnessed rapid economic development. With the expansion of the scale, the structure of the national economy has also been shifted from the originally agricultural-centered one to that with the industry as the leader, the tertiary industry as a essential complement, which results in the remarkable improvement in people's living standard. However, it also brings great impact to the protection of our natural resources and environment in the process of industrialization especially when pollution is found in company with economy. Since the structural pollution has already become a vital issue, the Chinese government put forward in the Tenth Five-year Plan that it ought to be solved completely to relieve pressures on environmental destruction through a strategic adjustment in economic structure. Thus how to do that is raised.The so-called "structural pollution" means some structure in economic system is involved in pollution, which in fact is a sort of proportion or distribution, certain ratio of which forms some definite feature of pollution. While one converts, so does the other. Therefore the crux is to change the structure of the economic system. Among the various structures concerted, industrial structure is the key aspect which results in pollution in three levels: 1) the industrial structure; 2) the industrial organization structure; 3) the regional industrial structure. These are not independent but interrelated elements which both lead to the appearance of pollution.It is an inevitable phenomenon in the process of economic development to have pollution and pollution is generally believed to be the outcome of relatively poor sustainable ability that environment has to digest the waste the economic system discharges. The close attention people have on this subject is due to the influence on the social economy and their living quality. The situation is trulyserious because it would restrain economic growth. Thus environmental protection has been included as one of the critical target in development, making economic aim shift from the unitary economic growth to the coordination of the two. In order to achieve that, analyzing the operating mechanism concerned is considered helpful. It is indicated that the industrial structure has a lot to do with the growth of economy, the utilization of resources and the pollution, especially with the structural pollution. Therefore, the industrial structure is a fairly nice incision.In the realm of economic growth, there has been a large amount of researches about the affect of industrial structure, yet none has brought environmental protection into the analysis models and frames concerned. The real efforts to do that come into being after the modern theory of sustainable development. Self-evidently, the ingoing extent of environmental elements into the economic research varies with the different understanding of environmental system especially that towards the possible influence environment has on economy. Thus there is a sharp distinction between the "weak sustainable development" and the "strong sustainable development" in the concept of sustainable development. The thesis belongs to the latter, deeming that the development of economy is governed by environment and must be kept within its limits while the adjustment of the industrial structure is to be carried on under the binding condition of resources.According to the relationship between the economic development (displayed by average income per person) and environmental quality shown by the Environmental Kuznets Curve (EKS), the latter would be deteriorated with the increase of income then improved when it reaches certain standard. There have been many scholars who have already made empirical researches of the curve. In effect, a hypothesis that environment could be improved and regainedis hidden in EKS, which provide theoretical prerequisite for the improvement. However, the conflict bet...
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