In this paper, we use the stochastic coefficient model to measure the resource mismatch index of Chinese provinces from 2003 to 2017, and use the static panel regression model to test the impact of environ_x005fmental regulation on the resource mismatch in China. The study finds that the regions with higher GDP usually have excessive capital but insufficient allocation of labor force, while the regions with lower GDP have excessive labor but insufficient allocation of capital. Environmental Regulation has positive correlation with the index of misallocation of labor force and capital. Environmental Regulation can obviously improve the situation of over-allocation of regional resources, but with the continuous strengthening of environmental regulation, resources will shift from over-allocation to under-allocation. At the same time, the labor force mismatch index is much more affected by the environment regulation than the capital mismatch index. In a certain level, environmental regulation will force the optimization of industrial structure, and the optimization of industrial structure will improve the allocation of labor and capital. The inspiration of this paper is that the intensity of environmental regulation should be adapted to local conditions to avoid low economic efficiency. The government should direct capital flows to less developed areas to alleviate the problem of labor shortage in more developed areas.