The　green　input　output　matrix　will　not　only　include　the　economic　factors　as　the　traditional　input　output　matrix,　but　also　include　the　environmental　factors　such　nature　resources,　environmental　pollution　and　environmental　protection.　Therefore　the　input　output　matrix　with　environmental　pollution　and　wastage　recycling　is　set　up　based　on　data　from　China　Statistical　Yearbook　2007　and　is　applied　to　analyze　the　sustainable　development　of　China.　The　green　input　output　matrix　has　two　variables　different　from　traditional　input　output　matrix,　i.e.　resources　restoration　and　pollution　control,　indicating　the　environment　pollution　and　wastage　recycling.　The　green　input　output　matrix　can　evaluate　the　sustainable　development　of　China　more　efficiently.