Under the guidance of carbon peak goals, control of road transport CO(2 )and reduction of pollutant emissions have become the focus of urban traffic management. For this reason, the mechanism of the price control strategy of urban traffic pollution reduction and carbon reduction is analyzed, and the factors influencing the new requirement from passenger car trips are revealed using the loss aversion, sunk cost effect, and system dynamics (LA-SC-SD theory). Then, a model of urban traffic pollution control and carbon reduction (TPCR) is established based on LA-SC-SD theory. The findings indicated that the price control strategy plays a dual role in passenger car trips. On the one hand, it can reduce the number of passenger car trips and play a positive role. On the other hand, after trips, due to the sunk cost effect, it will induce a new demand for trips, which will lead to the paradox effect of emissions reduction. The scrapping efficiency improvement strategy has a ceiling effect on TPCR. Compared with the benchmark scenario, the strict scenario can reduce the amount of CO2 generation from passenger cars by about 18.37%.