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

As a unique environmental regulation in China, the official accountability audit was piloted in 2014. With a fo- cus on prioritizing the ecological environment, officials in pilot districts have implemented economic construc- tion, adjusted industrial structures, and promoted coordinated development between the economy and envi- ronment. 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 "Ac- countability Audit of Officials for Natural Resource Assets (Trial)" released in 2015 as a quasi-natural experi- ment, 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 Propen- sity Score Matching and Difference-in-Differences model. The research findings indicate that the accountabil- ity 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 ben- eficial 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.