Atmospheric concentrations of the greenhouse gas nitrous oxide (N(2)O) have increased significantly since pre-industrial times owing to anthropogenic perturbation of the global nitrogen cycle, with animal production being one of the main contributors. Grasslands cover about 20 per cent of the temperate land surface of the Earth and are widely used as pasture. It has been suggested that high animal stocking rates and the resulting elevated nitrogen input increase N(2)O emissions. Internationally agreed methods to upscale the effect of increased livestock numbers on N(2)O emissions are based directly on per capita nitrogen inputs. However, measurements of grassland N(2)O fluxes are often performed over short time periods, with low time resolution and mostly during the growing season. In consequence, our understanding of the daily and seasonal dynamics of grassland N(2)O fluxes remains limited. Here we report year-round N(2)O flux measurements with high and low temporal resolution at ten steppe grassland sites in Inner Mongolia, China. We show that short-lived pulses of N(2)O emission during spring thaw dominate the annual N(2)O budget at our study sites. The N(2)O emission pulses are highest in ungrazed steppe and decrease with increasing stocking rate, suggesting that grazing decreases rather than increases N(2)O emissions. Our results show that the stimulatory effect of higher stocking rates on nitrogen cycling and, hence, on N(2)O emission is more than offset by the effects of a parallel reduction in microbial biomass, inorganic nitrogen production and wintertime water retention. By neglecting these freeze-thaw interactions, existing approaches may have systematically overestimated N(2)O emissions over the last century for semi-arid, cool temperate grasslands by up to 72 per cent.