Abstract: This paper systematically studies more than 30 national laws, policies, regulations, plans and official documents that are related to power plant SO₂ emission control. The study discovers some of the inconformability and inconsistency among these policies and regulations. The study also argues that the current policy framework still needs improvement. Through analysis of the cost structure of the most typical Flow-gas-desulfurization （FGD） method, four cost estimation formulas are proposed. The study shows that sulfur content is the largest contributing factor to the average cost of SO₂ removal. This paper suggests streamlining of current laws and policies and the adoption of combined total emission control （TEC） and emissions trading （ET） policy, so as to encourage the free choice of the efficient control strategy by power plants. The paper also recommends more favorable economic policies for SO₂ control and the streamlining of SO₂ emission control industry.