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This paper presents an energy-sharing market coupled with carbon emission trading to quantify peer-to-peer energy-sharing markets' economic and environmental influences. We establish a bi-level peer-to-peer energy sharing market considering the interaction between energy prosumers and the system operator. An interaction algorithm and generalized Nash game are thus applied in this work. With the simulation results, we find that the daily disutility of provincial systems is reduced by about 7 ¥ when time-of-use electricity rates are applied. This pricing strategy can encourage prosumers to participate in energy-sharing transactions. The subsidies of electricity rates, carbon prices, and renewable energy investments can improve the social welfare of the whole system. Considering the development of power generation technology and emission reduction targets, the change of optimization parameters in the next 30 years is analyzed in the example. It can be concluded that the total CO2 emission in 2050 will be reduced to almost half of that in 2020 in the energy-sharing markets. The subsidy of renewable energy generation and stricter CO2 emission constraints may accelerate the reduction of carbon emissions. [Display omitted] • It is the first time to assess the environmental effect of peer-to-peer energy trading with actual data. • We analyze the peer-to-peer energy trading impacts on the carbon emission amount in China. • We compare the market participants' revenue and CO2 emission considering the different scenarios. • We develop a bi-level coupled emission right trading market to verify whether total emission is reduced. • The development of technologies and various energy structures are considered quantitatively. [ABSTRACT FROM AUTHOR]