The effect of audit of outgoing leading officials’ natural resource accountability on environmental governance: evidence from China

Abstract

PurposeThis paper aims to examine the relationship between the audit of outgoing leading officials' natural resource accountability and environmental governance, as well as the internal mechanism of audit of outgoing leading officials' natural resource accountability that plays a role in national environmental governance.Design/methodology/approachBased on city-level panel data from 2012 to 2015, this paper adopts a difference-in-difference model to examine the role of government audit in national governance from an environmental perspective. Furthermore, using a mediating effect model, the study sheds light on the internal mechanism of audit of outgoing leading officials’ natural resource accountability that plays a role in national environmental governance.FindingsThis paper finds that: the implementation of the audit of outgoing leading officials’ natural resource accountability has significantly improved the water quality of the pilot area, but its effects on waste gas and smoke are not obvious; environmental supervision partly plays a mediating role in the improvement of regional environmental governance by the audit of outgoing leading officials’ natural resource accountability; the audit of outgoing leading officials’ natural resource accountability can complement the incentive mechanism of promotion. The older the local officials are, the more obvious the effect of the audit of outgoing leading officials’ natural resource accountability on the environmental quality of the pilot areas is.Originality/valueThis paper reveals the role of government audit from the perspective of environmental governance. It provides empirical evidence for policy regarding the audit of outgoing leading officials' natural resource accountability.