Incentive Mechanism Analysis of Environmental Governance Using Multitask Principal–Agent Model

Round 1

Reviewer 1 Report

In this paper, authors explored the principal agent model by considering environmental governance in context of incentive mechanism. There are some additional observations to improve the quality of the paper.

Abstract

It should reflect the used methodology, sample and main findings of the study. Even it should be very concise but with policy recommendations. It will attract the attention of the readers.

Introduction

There are severe language issues in the whole manuscript. Authors are suggested to use some professional services to improve the quality of the language.

There should be some empirical and theoretical foundations to establish the relationship between environmental governance and incentive structure. It would signify the objective and novelty of the study. A short introduction dose not a have a positive image on readers. There is need to extend the introduction building the significance of the study with the help of latest research on the topic.

Multitask Principal-Agent Model Construction and Optimization

The authors built the models of expected utility, risk costs, certain equivalence benefits etc on the basis of symbols instead of their explanations. While building an equation or model, every symbol should be explained and should convey the main themes of the model.

Influencing Factors Analysis of Optimal Incentive Contracts    

I would like to suggest to add some theoretical foundations when expanding the model for determination of factors influencing the optimal incentive contracts.

Discussion of Results

The findings of the study should be relate with earlier literature. I could not find a single study used to relate the findings of the study. It is important to highlight that if findings are consistent with earlier studies or not. If findings are different form earlier studies then it should be justified. 

Conclusion

How this study is useful for policy devising, is an important dimension but it is missing in the study. Moreover, future prospects of the study should be highlighted.

Author Response

Please see the attachment.

Author Response File: Author Response.pdf

Reviewer 2 Report

I read article closely, excellent, model, explanations math.  The authors' conclusions make good common sense to me:

Therefore the more importance local governments attach to either economic efficiency or pollution reduction, the weaker the incentives for both tasks should be so that the total utility of local governments can be increased instead. Conversely, if the relative importance that local governments attach to the economic benefit of enterprises is lower than the threshold value, or the relative importance that they attach  to the pollution reduction of enterprises is lower than the threshold value, the incentives  for the economic benefit task or the pollution reduction task can be strengthened correspondingly.

I suggest revised  title: "Incentive Mechanism Analysis of Environmental Governance using Multitask Principal-Agent Model"

 

Comments for author File: Comments.pdf

Author Response

We change the title to "Incentive Mechanism Analysis of Environmental Governance using Multitask Principal-Agent Model".

 

Author Response File: Author Response.docx

Round 2

Reviewer 1 Report

The authors have incorporated the comments.