Impact of an official accountability audit on industrial structure adjustment: a case study of environmental regulation in China

• Published in: Chinese Journal of Population, Resources and Environment
• Main Author: Yu Xia
• Format: Article
• Language: English
• Published: KeAi Communications Co., Ltd. 2024-06-01
• Subjects: Accountability audit; Difference-in-differences model; Environmental regulation; Industrial structure adjustment; Quasi-natural experiment
• Online Access: http://www.sciencedirect.com/science/article/pii/S2325426224000251

As a unique environmental regulation in China, the official accountability audit was piloted in 2014. With a focus on prioritizing the ecological environment, officials in pilot districts have implemented economic construction, adjusted industrial structures, and promoted coordinated development between the economy and environment. The effects of implementation have garnered widespread attention from society. However, there is limited research on the impact of an accountability audit on industrial structure adjustments. Using the “Accountability Audit of Officials for Natural Resource Assets (Trial)” released in 2015 as a quasi-natural experiment, this study collected panel data from 279 cities between 2013 and 2017. It then empirically analyzed the impact mechanism and effects of the accountability audit on industrial structure adjustment using the Propensity Score Matching and Difference-in-Differences model. The research findings indicate that the accountability audit directly impacted industrial structure adjustment, promoting the upgrading of the primary industry to the secondary industry and restricting the development of the tertiary industry. In addition, the audit is beneficial for enterprise entry, but not conducive to technological innovation, and has no significant impact on foreign direct investment. This conclusion fills a gap in the existing research and provides valuable insights for policymakers.