Abstract:The implementation of carbon emissions trading policy is important so that enterprises can both carry out cleaner production and promote the sustainable development of regional economies, societies, and environments. The present study used the trial carbon emissions trading market (CETM) policies of five provinces and two cities, which had been proposed by the National Development and Reform Commission in 2012, and a Difference-in-Differences approach to analyse the effect of the CETM on voluntary clean production by enterprises in various regions of China. This pilot project, which established an account of carbon emission in total volume control and quota trading, will facilitate the formulation of scientific, targeted, and differentiated carbon emission reduction policies and estimation of appropriate emission reduction space throughout China. The findings of this study indicate that 22% more enterprises willingly conduct clean production in pilot areas than in non-pilot areas. The annual mean concentrations of PM10, SO2, and NO2 in pilot areas were 0.0288, 0.0170, and 0.0105 mg/m3 lower, respectively, than those of the non-pilot areas. In addition, quantile regression and differential decomposition analyses indicated that CETM trial policies are more effective in regions where lower proportions of enterprises voluntarily carry out cleaner production. These conclusions will help the Chinese government implement CETM policy in a scientifically and orderly manner, so as to promote the will of enterprises to conduct clean production and improve air quality. These findings support several suggestions. First, priority should be given to the promotion of Clean development mechanism (CDM) projects in more populated areas (e.g., Sichuan, Yunnan, inner Mongolia, Gansu, and Hebei). Second, in areas where relatively fewer enterprises carry out cleaner production (e.g., Hainan, Xinjiang, Qinghai, Guizhou, and Shanxi), the government should improve the enterprise awareness of energy conservation, environmental protection, and cooperation with developed industrial countries about the propaganda of CDM projects. Finally, each region should accelerate its industrial and economic restructuring, alter the mode of its economic growth, optimize the energy structure, reduce energy consumption, and increase investments in environmental governance, in order to promote sustainable development.