Abstract: The meso-level foundation of high-quality economic development lies in the high-quality development of industries. Coordinating the promotion of high-quality industry development and high-level environmental protection are of great significance for accomplishing the primary task of high-quality development. Based on this, the article utilizes the China Industrial Enterprise Database and the China Prefecture-level City Panel Database to empirically study the impact of environmental regulation intensity on the resources misallocation in industries and sectors through static and dynamic panel regression models. The research finds that environmental regulation intensity has a significant corrective effect, effectively reducing the resources misallocation within both industries and sectors. These findings remain robust after conducting benchmark regression analysis, heterogeneity analysis, and addressing endogeneity issues. The intensity of environmental regulation corrects the resources misallocation, promoting the high-quality development of industries and sectors. This research provides new policy insights for the coordinated promotion of high-quality economic development and high-level environmental protection. Strengthening the meso-level foundation for high-quality economic development effectively leverages the corrective effects of environmental regulatory policies. It also emphasizes deepening reforms in the ecological civilization system, improving the ecological and environmental governance system, and focusing on the construction of a “Beautiful China” by accelerating the comprehensive green and low-carbon transformation of industry.