Based on the Nordhaus-Pizer Model and Leimbach Model and within the theoretic framework of new economic growth, this paper presents a dynamic macroeconomic model to analyze the impact of greenhouse gases (GHG) emission in China at different reduction levels upon its GDP growth and social welfare. The discussions regarding the China’s CO 2 emission reduction focus on cost and benefit or whether the economic loss will be recovered by the economic gains from the reduction of CO 2. There is no reason why Ch...