In the present work, the density functional theory calculations analysis are performed to study the reaction mechanisms and catalytic activity of ethanol reactions over Co 0 , Co 2+ , and Co 3+ sites. Adsorption situations and the reaction cycles for ethanol reactions on cobalt catalysts were clarified. The mechanisms include the dehydrogenation steps of ethanol and the C−C cleavage step. The present calculation results show that the mechanism of ethanol reaction on Co 0 site is CH 3 CH 2 OH → CH 3 CH 2 O → CH 3 CHO → CH 3 CO → CH 3 +CO, and the final products are CO and H 2 . H 2 is formed by the combination of adsorbed H species. On Co 2+ site, the mechanism is CH 3 CH 2 OH → CH 3 CH 2 O → CH 3 CHO, and the main final product is CH 3 CHO species. On Co 3+ site, the mechanism is CH 3 CH 2 OH → CH 3 CH 2 O → CH 3 CHO → CH 2 CHO → CH 2 CO → CHCO → CCO → COCO → CO → CO 2 , and the final products are CO 2 and H 2 O. The rate-limiting step on Co 0 , Co 2+ , and Co 3+ sites is the form of CH 3 CHO species. The possible reasons for the different catalytic activities may be the following two facts: First, Co 3+ sites density in Co 3 O 4 (110)-A is larger than that of Co 2+ and tends to break the C−C bond to produce CO; second, Co 3+ binds more oxygen atoms that the further oxidation of ethanol requires, which leads to the full oxidation of ethanol to CO 2 on Co 3+ sites. The present result may help people to design an ESR (ethanol stream reaction) catalyst by controlling its oxidation state, and the catalyst with modest oxidation state is benefit for the H 2 formation. The proper catalyst should own the ability to break C−C to form CO but avoid the full oxidation of CO into CO 2 which is needed to react with H 2 O in the water−gas shift reaction generating CO 2 and H 2 .