Abstract: With the rapidly increase of pesticide requirement, the conflict between pesticide and environment is sharpened. The “externalities” theory in environment economics is applied to analyze the pesticide pollution and try to find a way to decrease it. In our country, the number of pesticide corporations is huge, but the scale of most of them is small. At the same time, the user is numerous too, but few can use the pesticide scientifically. So the government should intervene in the production and the use of the pesticide by the non-marketing way such as control and law.