A novel three-dimensional energy-saving and emission-reduction chaotic system is proposed, which has not yet been reported in present literature. The system is established in accordance with the complicated relationship between energy-saving and emission-reduction, carbon emissions and economic growth. The dynamic behavior of the system is analyzed by means of Lyapunov exponents and bifurcation diagrams. With undetermined coefficient method, expressions of homoclinic orbits of the system are obtained. The Silnikov theorem guarantees that the system has Smale horseshoes and the horseshoes chaos. Artificial neural network (ANN) is used to identify the quantitative coefficients in the simulation models according to the statistical data of China, and an empirical study of the real system is carried out with the results in perfect agreement with actual situation. It is found that the sooner and more perfect energy-saving and emission-reduction is started, the easier and sooner the maximum of the carbon emissions will be achieved so as to reduce carbon emissions and energy intensity. Numerical simulations are presented to demonstrate the results. (C) 2012 Elsevier Ltd. All rights reserved.