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Central Environmental Supervisors and Departure Audits of Outgoing Local Government Officials’ Environmental Accountability: An Analysis Based on Game Theory
Journal of Finance and Accounting
Volume 8, Issue 3, May 2020, Pages: 115-124
Received: Apr. 1, 2020; Accepted: Apr. 23, 2020; Published: May 14, 2020
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Rubing Liu, School of Accounting/Audit Governnance and Risk Control Research Center, Guangdong University of Foreign Studies, Guangzhou, China
Yuyu Zhang, School of Accountancy, Queensland University of Technology, Brisbane, Australia
Teng Lin, School of Accounting/Audit Governnance and Risk Control Research Center, Guangdong University of Foreign Studies, Guangzhou, China
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The establishment of central environmental supervision system (CESS) and the departure audits of outgoing local government officials are major environmental initiatives established by the Chinese government during the 18th National Congress of the Communist Party of China in 2012. Their aim is to separate the different environmental responsibilities of the local and central governments. In just one year, central environmental supervisors inspected 30 provinces’ and cities’ environmental performance and punished many local officials for their failures to fulfil their environmental responsibility as part of a national pollution crackdown. Inspired by the significant and profound effects of the environmental audits, we construct a tripartite game model involving the central auditors, environmental whistle-blowers and local government officials. We show that local government officials are more likely to act responsibly and that auditors adopt more detailed auditing procedures due to the involvement of whistle-blowers. This suggests that the central environmental supervision system must be institutionalised, legalised, normalised and focus on protections for whistle-blowers. Environmental audits are useful for focusing on departing officials’ accountability for environmental protection. We urge the government to strengthen the transparency of audit and to distribute environmental audit information on social media.
Environmental Audit, Environmental Responsibility, Environmental Whistle-blowing, Whistle-blower Protection System, Cooperative Governance, Tripartite Game Analysis
To cite this article
Rubing Liu, Yuyu Zhang, Teng Lin, Central Environmental Supervisors and Departure Audits of Outgoing Local Government Officials’ Environmental Accountability: An Analysis Based on Game Theory, Journal of Finance and Accounting. Vol. 8, No. 3, 2020, pp. 115-124. doi: 10.11648/j.jfa.20200803.12
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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