This project is based on the pooling data from 21 cities and counties in Taiwan to explore the impact of environmental policy and human capital on environmental quality in Taiwan area. . The research results indicate that the social strategy has an effective impact on decreasing water pollution and increasing green conditions. The strategy of regulation does not work effectively. The governmental financial expenditure does not show great effects on decreasing air pollution and water pollution and increasing green conditions. On the other hand, increasing GNP does reveal the great effectiveness. The relationship between the financial expenditure for government and air pollution shows a U–shaped relationship. And the relationship between water pollution and green condition indicates an inverted U- shaped relationship. The cities with higher education level have better environmental conditions, so the government may consider increasing citizens’ educational level as one of the strategies to improve environmental quality.