Cooperative Adaptive Cruise Control (CACC) allows for vehicles to safely travel with shorter gaps and respond almost simultaneously to speed changes in an environment with vehicle-to-vehicle (V2V) communications. This allows for improvements in capacity on freeways but also for congestion reduction on urban arterial corridors. CACC vehicles also have the potential to reduce environmental impacts and enhance safety. This study investigated the potential mobility, environmental, and safety benefits of CACC vehicle operations on urban arterials using a microscopic simulation developed based on realistic field experiments. A case study of an arterial corridor in Berkeley, California suggests that introducing CACC vehicles can reduce delay by up to 70%. CACC vehicles can also mitigate the environmental impact by reducing the number of stops by 33% and the amount of time spent idling by 62%. The case study also suggests that CACC vehicles has the potential to improve safety by reducing variations in speed and the number of lane changes.