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

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.