Abstract:"Building a unified national market" and "continuing to fight a good battle for blue skies and promoting green development" are both important tasks put forward in the report of the Twentieth Party Congress, as well as the inherent requirements of high-quality development. In order to explore the green path of a unified large market, a panel regression model is used to explore the impact of air quality on market integration based on city data from 2001-2019, and a multi-period DID model is used to explore the impact of “New Ambient Air Quality Standards(2012)” policy on market integration.The study shows that: air quality improvement is conducive to the formation of market integration, a conclusion that still holds after a series of robustness tests and endogeneity tests; the promotion of market integration by air quality improvement is more pronounced in non-urban agglomeration cities and in the eastern part of the country; the degree of commodity circulation, labor mobility, and capital mobility are the most important channels through which air quality affects the integration of the domestic market; and further analysis reveals that the implementation of “New Ambient Air Quality Standards(2012)” is able to reduce market segmentation and promote market integration effectively. The findings are important for exploring the green path of market integration and provide theoretical and empirical evidence for local governments to promote green development and build market integration.