From balance sheets to green fields: assessing the role of natural resource asset audit in enhancing China’s ecological product value

The natural resource asset audit (NRAA) is an institutional innovation designed to strengthen ecological governance by evaluating the environmental responsibilities of local government officials. In pilot audit areas, local governments may, under political promotion pressure, enhance the ecological environment, thereby raising the value of eco-products. Drawing on the assessment of ecological product value (EPV) in 1540 counties across China, we exploit the 2015 NRAA pilot program as a quasi-natural experiment. The causal effect on EPV is estimated using a multi-period difference-in-differences (DID) model. Compared to non-pilot counties, the results confirm that audit pilot areas significantly enhanced EPV levels. Furthermore, a heterogeneity analysis of internal and external environments provides additional empirical evidence for the improvement in EPV. The study also analyzes the impact mechanisms based on ecological constraints and incentives. The government’s enhanced environmental regulation efforts are identified as a potential mechanism for increasing EPV, while, in terms of ecological incentives, green technological innovation plays a mediating role, and government spending exhibits the opposite effect. This research offers empirical evidence for evaluating the policy effect of the NRAA pilot program on EPV.