Compact development is often recommended to reduce auto-dependency thereby decreasing related energy consumptions and transportation emissions. However, there could be a non-linear relationship between density and transportation emissions because of a possible non-linear association between density and vehicle miles travelled (VMT); low travel speed due to congestion; and the relationship between neighborhood characteristics and vehicle characteristics (e.g., vehicle type and age). In addition, the self-selection issue can exist in the land use-transportation emissions analysis because transportation emissions are often estimated based on travel behavior. Using the 2006 Puget Sound Regional Council (PSRC) Household Activity survey, the follow-up stated preference survey, the Motor Vehicle Emission Simulator (MOVES) data, and the GIS network data, this study investigates the non-linear effects of densities on CO2 equivalent (CO2 e) emissions with the consideration of self-selection. Specifically, quadratic forms of population and employment densities, different population density group indicators, and attitudinal factors are employed in the regression models. The results indicate that people living in denser neighbor-hoods tend to generate fewer CO2 e emissions. However, this effect becomes insignificant as population density reaches a certain level.