This paper constructs a monetary growth model with elastic labor supply to investigate the policy effect of public abatement expenditures on the inflation rate and on economic growth. One main result is that an extension of public abatement expenditure is conducive to economic growth, but it tends to decrease the consumption-physical capital ratio. Second, the relationship between abatement expenditures and the inflation rate is ambiguous, and most importantly this result could fit in with the empirical data. We also find that the impact of abatement expenditures on social welfare is doubtful, depending on two forces. One force is the social welfare improving effect, including the environmental amenity value effect and the economic growth effect, while the other force is the social welfare deteriorating effect, including the resource mobilization effect and the labor disutility effect.