Digital Economy, Entrepreneurship of Small and Medium-Sized Manufacturing Enterprises, and Regional Carbon Emissions: Evidence from Chinese Provinces

Juan Tan (), Rui Liu, Jianle Lu and Qiong Tan ()
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Juan Tan: Business School, Beijing Technology and Business University, Beijing 100048, China
Rui Liu: Business School, Beijing Technology and Business University, Beijing 100048, China
Jianle Lu: Academic Affairs Department, Beijing National Accounting Institute, Beijing 101312, China
Qiong Tan: School of Economics, Central South University of Forestry and Technology, Changsha 410004, China

Sustainability, 2025, vol. 17, issue 5, 1-24

Abstract: In recent years, the digital economy (DE) has gained significant attention for its potential in reducing carbon emissions (CE). This paper intends to explore the regional carbon reduction effect of the DE and the entrepreneurship of small and medium-sized manufacturing enterprises (SMMEs), as well as disclose the mechanism through which the entrepreneurship of SMMEs functions. To this end, this paper employs an extended STIRPAT model to analyze the panel data of 30 provinces in China spanning from 2011 to 2018. The empirical analysis shows that (1) the DE has a positive effect on reducing regional total carbon emissions (TCE) and carbon emissions intensity (CEI); (2) the entrepreneurship of SMMEs has a negative influence on reducing regional CE; (3) the entrepreneurship of SMMEs fully mediates the link between the DE and TCE and partially mediates the relationship between the DE and the CEI; and (4) the DE has a stronger carbon reduction effect in regions with low urbanization levels and low institutional quality, as well as non-industrial pilot areas. The findings provide empirical evidence to policymakers on promoting CE reduction and the DE. This study has practical value for SMMEs to improve competitiveness and survival under the current environment.

Keywords: digital economy; carbon emissions; SMMEs (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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