The　carbon　trading　policy　is　a　market-based　tool　aimed　at　reducing　carbon　emissions　and　may　simultaneously　yield　a　combined　air　quality　improvement　effect.　This　study　employs　a　two-way　fixed-effect　model　to　estimate　the　causal　relationship　between　daily　carbon　trading　volumes　and　air　pollution　from　2015　to　2020.　Results　show　that　a　one　percent　increase　in　daily　carbon　trading　volumes　leads　to　a　reduction　of　0.23%　in　PM2.5　and　0.26%　in　PM10.　In　addition　to　particulate　matter,　the　carbon　market　can　significantly　reduce　SO2　and　air　quality　index.　We　also　examine　provincial　and　regional　heterogeneities　and　find　an　apparent　reduction　effect　in　Beijing,　Guangdong,　Hubei,　Tianjin,　and　cities　in　the　more　economically　developed　eastern　region.　Notably,　our　estimations　indicate　that　the　carbon　market＇s　impact　on　reducing　air　pollution　is　most　significant　annually　during　the　carbon　quota　compliance　period　and　tends　to　intensify　over　the　years.　Furthermore,　we　predict　the　carbon　trading　scale　to　meet　China＇s　stringent　future　air　quality　improvement　target,　indicating　that　the　carbon　trading　volumes　are　projected　to　be　450　million　tons　in　2035　under　the　high　contribution　scenarios.　These　findings　can　provide　insightful　policy　implications　for　China　and　other　countries　to　establish　more　flexible　and　well-rounded　carbon　trading　policies.