The effect of carbon and sulfur taxation on the economy and emission reduction has been simulated based on the climate governance in the present study. The results showed that under the baseline scenario, China's economy will keep growing, and the GDP will reach $69.95 trillion in 2100. Carbon emissions present Environmental Kuznets Curve characteristics, and a peak will appear in 2034 at a value of 3832 MtC. Under the taxation governance strategy, regardless of sulfur or carbon taxation, China's GDP will be affected; however, carbon emissions will be simultaneously reduced. Levying carbon and sulfur taxes simultaneously will reduce carbon emissions significantly. The peak carbon emissions value of 3111 MtC, decreased to 721 MtC from the carbon emissions peak value in the baseline scenario. Based on the current trend, the carbon emissions peak will appear in 2031. The carbon emissions are three years in advance of the baseline scenario, and, if they continue on the following trend, will fulfill the promise of carbon peak around 2030.