The　effectiveness　of　carbon　price　in　emissions　trading　schemes　(ETS)　is　an　important　issue　in　China　in　the　context　of　its　ambitious　climate　change　goals.　This　paper　adopts　a　staggered　difference-in-differences　model　to　estimate　whether　China＇s　ETS　reduced　CO2　emissions　while　maintaining　economic　growth　even　under　low　carbon　prices.　The　results　indicate　that　despite　the　low　carbon　prices,　the　ETS　effectively　reduced　CO2　emissions　without　undermining　the　economy.　Specifically,　an　increase　of　$1　in　the　carbon　price　reduced　CO2　emissions　by　1.69%　and　increased　the　per　capita　GDP　by　$286.　The　carbon　price　primarily　achieved　emission　reduction　and　promoted　economic　development　through　channels,　such　as　technological　innovation,　foreign　direct　investment,　energy　mix,　and　industrial　structure.　Carbon　leakage　to　neighboring　regions　was　not　evident.　Heterogeneity　analysis　showed　that　the　environmental　effects　of　the　carbon　price　were　more　pronounced　in　regions　with　higher　levels　of　economic　development　and　CO2　emissions.　Conversely,　the　economic　effects　of　the　carbon　price　were　more　pronounced　in　regions　with　lower　levels　of　economic　development　and　CO2　emissions.　The　carbon　price　achieved　significant　economic　effects　in　regions　that　solely　adopted　the　free　allocation　mode　of　emission　allowances,　while　regions　that　used　a　combination　of　free　allocation　and　auctioning　experienced　substantial　emission　reduction　effects.　Despite　low　carbon　prices,　China＇s　ETS　effectively　reduced　CO2　emissions　without　compromising　economic　growth.　This　finding　provides　new　empirical　evidence　for　the　effectiveness　of　carbon　price　as　well　as　decision　support　for　the　future　promotion　of　ETS.Technological　innovation,　FDI,　energy　mix,　and　industrial　structure　are　crucial　channels　through　which　the　carbon　price　achieves　emission　reduction　and　promotes　economic　development.The　absence　of　carbon　leakage　to　neighboring　regions　suggests　that　ETS　is　an　internally　effective　mechanism　for　emission　control.Heterogeneity　analysis　showed　that　regional　characteristics　and　allowance　allocation　modes　can　influence　the　effectiveness　of　carbon　price,　thus　emphasizing　the　importance　of　targeted　policy　design　and　appropriate　allocation　methods.