Abstract:This study used a Shephard distance function method, which based on production theoretical framework, to decompose China’s industrial SO2 emissions change index in 28 different regions during 2000 and 2006. The SO2 emission change index was decomposed to five factors, including technical efficiency change, technical change, inputs growth, and outputs mix. The increasing change of SO2 emission was primarily affected by industrial energy consumption, capital investment, and outputs mix change. Technical change was the only reason to cause industrial SO2 emission declining. The SO2 emission control policies also played an important role in promoting industrial SO2 control technical progress and technical efficiency during the 10th five year plan period. For different areas, the technical progress change in the eastern, central and western China resulted in the reduction of industrial SO2 emission, where the technical change index was a dominant contributor to SO2 emission abatement.