The impact of Central Environmental Protection Inspection on urban green technological innovation

Innovation and green development drive economic growth, and innovative environmental policies resolve the environment-economy contradiction. This study investigates the impact of the Central Environmental Protection Inspection (CEPI) on urban green technological innovation, utilising Double Machine Learning (DML) with panel data from 255 prefecture-level cities in China spanning 2014–2021. It also explores the synergistic effects of market and administrative mechanisms. Results indicate CEPI significantly enhances urban green innovation. Heterogeneity analysis shows CEPI has a stronger effect on green innovation in China’s Northwestern and Northeastern regions, the Pearl River Delta urban agglomeration and state-designated key environmental protection cities. Mechanistic tests indicate CEPI promotes green innovation through command-based environmental regulations and green credit activation. Moreover, green bond market development enhances CEPI’s positive impact on green innovation. Government environmental penalty intensity, environmental attention and green development funds significantly boost green innovation. Therefore, a systematic evaluation of key factors (e.g. regional economies, innovation vitality), differentiated CEPI standards with supporting policies, an improved green financial framework and synergistic governance tools are needed to strengthen CEPI's promotion of urban green innovation.