Auditing the Leader: The Impact of Targeting Local Officials’ Environmental Regulations on Innovation

Zhengqing Zhou (), Hongshan Ai (), Jiacheng Liu (), Malin Song () and Huiyu Yang ()
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Zhengqing Zhou: Jiangxi University of Finance and Economics
Hongshan Ai: Hunan University
Jiacheng Liu: Hunan University
Malin Song: Anhui University of Finance and Economics
Huiyu Yang: Hunan University

Journal of the Knowledge Economy, 2025, vol. 16, issue 1, No 45, 1258-1290

Abstract: Abstract This study investigates the impact of the “Officials’ Off-office Audit Based on Natural Resource Assets” (OABNRA) policy of China on the urban innovation level. While previous studies have found evidence of the “Porter effect” of targeting firms’ environmental regulation, the impact of targeting local officials’ environmental regulation on innovation remains unclear. Using Chinese city panel data from 2012 to 2019, we found that OABNRA significantly promotes the urban innovation level, and the promotion strengthens over time. In addition, air pollution governance is the channel of the impact of OABNRA on the urban innovation level. The industrial structure serves as a moderating the innovation effect of OABNRA. The innovation effect of OABNRA is heterogeneous in resource abundance, marketization, city tier, and off-office official type. Our findings provide important insights for policymakers on achieving economic development and environmental protection by targeting local officials’ environmental regulations.

Keywords: Officials’ off-office Audit Based on Natural Resource Assets (OABNRA); Environmental regulation; Urban innovation level; Porter effect; Difference-in-Differences (DID) (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-02028-2

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