Government Environmental Auditing and Synergistic Governance Outcomes: Evidence from Chinese Cities

Abstract

This study aims to explore the role of government environmental auditing in promoting China’s coordinated goals of “pollution reduction, carbon mitigation, ecological expansion, and growth.” By analyzing 1959 panel data from 227 prefecture-level cities in China between 2011 and 2022, a four-dimensional evaluation framework was constructed, and empirical testing was carried out using a double machine learning method. The results indicate that environmental auditing significantly enhances the synergy of environmental governance, mainly by raising public environmental awareness, promoting industrial clustering, and fostering green innovation. Additionally, green finance provides complementary support to this process. This effect is particularly pronounced in regions with higher levels of marketization, more developed financial technology, and greater environmental expenditure. Based on these findings, this study concludes that environmental auditing plays a crucial role in promoting China’s coordinated goals of “pollution reduction, carbon mitigation, ecological expansion, and growth.” In particular, environmental auditing demonstrates its institutional value in promoting sustainable governance, especially in developing economies.