Using time series data over the periods 1989 - 2009, this paper empirically investigated the relationships and dynamic interactions between environmental pollution and economic growth in China. Which was based on principal components analysis, granger causality test and generalized impulse response function and variance decomposition analysis based on VAR method. The results showed that economic growth was a important result of Chinese environmental pollution, and there was a delay on the reaction of the deterioration of the environment. Economic growth was the price of the pollution of the en...