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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Zhengqing Zhou & Hongshan Ai & Jiacheng Liu & Malin Song & Huiyu Yang, 2025. "Auditing the Leader: The Impact of Targeting Local Officials’ Environmental Regulations on Innovation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 1258-1290, March.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-02028-2
    DOI: 10.1007/s13132-024-02028-2
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