The rapid growth caused very serious environmental pollutions in Taiwan. This paper attempts to use the system dynamics methodology to construct a simple model to study the trade-offs between economic growth and environmental pollutions. The model is structured with feedback loops among three sectors; The government, the general public, and the industries. Environmental regulations with various implementation times and strengths are tested in the model to examine their effects on the smoothness of the economy and pollution changing pattern. The results show that a timely not-so-strict environmental regulation combined with an environmental education measure focused on lowering expectation on economic rate may be a better choice for Taiwan to go through the tough time more smoothly.