Steel-manufacturing　cities　are　facing　slow　economic　development　and　an　increasing　pressure　for　improving　and　protecting　their　environment,　making　green　economic　transformation　priority.　Located　in　the　capital　region,　Tangshan　is　the　largest　steel　producer　and　is　ranked　in　the　top　10　cities　in　China　that　have　the　worst　air　quality.　This　study　aims　to　explore　an　optimisation　path　to　pursue　the　green　transformation　of　economic　development　and　air-pollution　control　with　incentives　on　industrial　restructure　and　the　implementation　of　a　cleaner　production　approach.　In　this　study,　we　construct　a　green　economy　transformation　decision-making　model　to　establish　dynamic　optimisation　simulation　for　the　period　2016　to　2025.　For　this　purpose,　we　use　integrating　methods　of　system　dynamics,　input-output　modelling,　and　dynamic　multi-objective　programming.　The　simulation　results　verify　the　existing　a　negative　development　trend　under　the　current　situation　along　with　the　positive　economic　development　(with　acceptable　levels　of　environmental　pollution)　when　there　is　an　increase　of　investments　in　clean　production　technologies.　Technology　advancement　and　cost　reduction　values　are　explored　further.　When　the　technological　cost　was　reduced　by　15%,　both　the　highest　economic　elasticity　and　an　optimal　air　pollutant　control　capacity　can　be　achieved　simultaneously.　Additionally,　the　growth　rate　of　Tangshan＇s　GRP　can　reach　39%,　while　the　NOX　and　SO2　emissions　can　be　simultaneously　reduced　by　42%　and　36%,　respectively　by　the　year　2025　(compared　to　the　emission　levels　and　GRP　in　2016).　Our　study　has　improved　upon　previous　research　methods　to　put　forward　a　specific　optimisation　path　to　achieve　green　economic　transformation　for　steel-manufacturing　cities　through　industrial　structure　adjustments　and　technological　updates.　This　is　also　conducive　to　the　sustainable　development　of　similar　cities　that　are　characterized　by　heavy　industries.　©　2020　Elsevier　Ltd