Green governance: The impact of environmental auditing on carbon emissions in Chinese cities

The study manually compiled city-level environmental auditing (EA) data from the National Audit Office to examine how EA influences the advancement of low-carbon development. Using panel data from 281 prefecture-level cities over the period 2008–2021, the research systematically investigates the relationship between EA and carbon emissions. The findings reveal that EA helps reduce urban carbon emissions, primarily by fostering green technological progress and lowering energy consumption. Furthermore, the study validates moderating effects from both micro- and macro-level perspectives: increased public environmental awareness and optimized industrial structure enhance the carbon reduction impact of EA. Heterogeneity analysis indicates that the carbon mitigation effect of EA is more pronounced in cities with greater fiscal investment, non-traditional industrial bases, higher degrees of marketization, and more advanced digital economies. This research not only enriches the literature on carbon emissions but also provides robust empirical evidence and policy recommendations regarding the role of government EA in driving low-carbon transitions and achieving China’s dual carbon goals. The conclusions provide essential guidance for policymakers to optimize EA policies and facilitate China’s economic shift toward sustainable, low-carbon development, which has important theoretical and practical implications.