The propose of this paper is to construct a modeling of environment pollution and sustainable development (AMES). Under the consideration of environment pollution and sustainable development issues, the objectives of AMES is to maximize the total present utility value of present and future generations. To internalize the externality, we adopt the pollution taxation policy to collect the pollution tax from polluters(producer and consumer)in order to be in accord with the spirit of social justice. Arid the balanced budget should make the pollution tax revenue be adequate to 'provide the government pollution control and public expenditure policy. This paper applies the dynamic optimization theory to construct the model.