Up to 80% of Product’s environmental impact are determined at design phase, therefore, lacking of environmental integrity thinking is the key shortage of current solid waste management. This paper introduces Product Life Cycle Emission Fee Model to describe how the integrated product policy of life cycle production to encourage the product sustainable design incentive. Besides, we also presents the obstacles of green investment due to the myopic behavior. The key finds are as follows: (1) Adopting a discrimination rate for final waste disposal that would be more effective in encouraging environmentally friendly designing; (2) Higher emission allowance price will facilitate firm to produce much green products; (3) Higher emission intensive of the final disposal wastes will stimulate more productive investment as well as environmentally friendly capital investment, leaving abatement capital stock unchanged; (4) Promoting consumer’s preference of green products is the driving force to facilitate green production of the firm; (5) Internalizing the external benefit of green product is a key strategy to overcome the investment myopic behavior for encouraging environmental design investment. This study further validates the theoretical results with domestic data.