In　this　study,　we　consider　the　sulfur　dioxide　emissions　trading　pilot　scheme　(SETPS)　of　China,　with　pilot　provinces　as　the　treatment　group　and　other　provinces　as　the　control　group.　We　employ　the　difference-in-differences　method　to　estimate　the　effects　of　the　SETPS　on　pollution　mitigation　and　economic　growth.　Results　show　that　the　SETPS　plays　a　robust　role　both　in　China＇s　industrial　sulfur　dioxide　abatement　and　in　economic　growth.　Furthermore,　by　applying　regression　analysis　to　explore　regional　heterogeneity,　we　find　that　it　has　a　stronger　effect　on　industrial　sulfur　dioxide　reduction　in　the　Central　China　than　it　does　in　the　Eastern　and　Western　China,　and　it　also　exerts　a　positive　influence　on　economic　growth　in　the　Western　China.　Moreover,　a　time-trend　analysis　indicates　that　the　pollution　reduction　effect　of　the　SETPS　has　decreased,　while　the　economic　growth　effect　has　slightly　increased　since　2007.