Based on the panel data of the western region from 1994 to 2016, the panel vector auto-regression (PVAR) estimation model is constructed to dynamic analyze the relationship between environmental pollution and economic competitiveness. The results show that: ① there is an interactive relationship between environmental pollution and economic competitiveness in western China, and the relationship between environmental pollution and economic competitiveness conforms to the characteristics of the environmental kuznet (EKC) curve. ②There is no long-term co-integration relationship between environmental pollution and economic competitiveness, but there is a two-way granger causality. The variance decomposition results show that the contribution is large of the economic competitiveness to the change of environmental pollution, while the impact is small of the environmental pollution on the change of economic competitiveness, which indicates that the improvement of economic competitiveness in western China is at the cost of intensifying environmental pollution, and environmental pollution is not an important factor hindering the improvement of economic competitiveness. Therefore, the western region should pay attention to the adjustment and upgrading of industrial structure and vigorously develop green economy; To promote the coordinated development of trade and environment, regions and environment; Improve the level of environmental regulation, reduce pollution emissions, and achieve a synergy mechanism between environmental protection and economic development.