Based on socio-economic data from 52 counties (cities) in Jiangsu province from 2004 to 2006,this paper empirically assesses the regional environmental and economic effects of formula fertilization by soil testing project applying DID model with the combination of EKC model,C-D model and output-supply model.Due to the gradual and yearly pilot-based promotion of this project,DID model was applied to examine the effects of the implementation of this project on the use of chemical fertilizer per unit farmland and GDP of arable sector as well as the sustainability of these effects.The result shows that by controlling other factors,implementation of the project of formula fertilization by soil testing could significantly increase the GDP of arable sector,and the effect increases year by year.While its reduction effect on the use of chemical fertilizer per unit farmland only appears in the second year after the implementation of this project.Results also show that fertilizer application intensity has an inverted U-shaped relationship with both economic development and a turning point of GDP 16 615 yuan per capita.Consequently,this paper proposes suggestions on how to actively promote formula fertilization by soil testing technology so that environmental and economic win-win development could be achieved.