Abstract:This study considers China’s potential CO2 abatement and its subsequent impacts on the aggregated GDP growth. Based on a specified macro-economic model, several alternative of Chinese CO2 abatement were development, and their respective impacts on Chinese GDP growth performance were simulated. As revealed by the simulating results, a reduction of 0.2 percent in the growing Chinese CO2 emission would bring about an annual average GDP growth rate of 7.2 percent, and by 2050 the aggregated GDP of China would shrink by 5.12 percentage if compared it to the scenario without abatement. Moreover, a reduction of 0.5 percent in the growing CO2 emission would reduce 12.4 percent of China’s total CO2 emission over 2000~2050, which would also reduce the Chinese GDP growth rate to be 6 percent per annum. Finally, if the Chinese government increase its investments on education and R&D by 0.5 percent of GDP, not only would the negative effects of CO2 abatement be absorbed, but an annual average GDP growth rate of 11.6 percent would created through 2050.