Local Fiscal Pressure and Enterprise Environmental Protection Investment under COVID-19: Evidence from China
Round 1
Reviewer 1 Report
This paper uses continuous DID method to investigate the impact of the increase in local fiscal pressure on enterprise environmental protection investment. The study finds that the increase in local fiscal pressure significantly reduces the enterprise environmental protection investment, and has a greater impact on non-state-owned enterprises, large enterprises, enterprises located in the "two-control-zone" cities and enterprises located in cities with low fiscal self-sufficiency rate. The mechanism analysis shows that the local governments choose to ease the fiscal pressure by "increasing revenue" and "cutting expenditure". The former increases the non-tax burden of enterprises, while the latter reduces the enterprise environmental protection subsidy income, which leads to the decrease in environmental protection investment. The findings of this paper indicate that it is necessary to focus on solving the local fiscal pressure dilemma in order to realize the green development. The topic is interesting but there are some points to be addressed. The objectives of the analysis should be evidenced in the abstract and introduction sections. The methodology should be further explained. In particular, why DID method is used ? The results should be discussed in terms of policy implications. The conclusions should be improved with the weaknesses of the analysis and the insights for future research. The text should be proofread because some sentences are not clear (also in the title of the manuscript).
Author Response
Dear Reviewer,
Thanks for your positive and constructive comments and suggestions on my manuscript entitled “Local Fiscal Pressure and Enterprise Environmental Protection Investment under COVID-19: Evidence from China” (sustainability-2277525).
I have studied the comments and revised the manuscript carefully.
Please see the attachment.
I would like to express my great appreciation to you for comments on my paper. Looking forward to hearing from you.
Thank you and beat regards.
Sincerely,
Jing Ren
Author Response File: 
Author Response.pdf
Reviewer 2 Report
Note for consideration
1. To obtain data: By comparing the difference in effect between the treatment group and the control group before and after the policy change. The author describes the stages of obtaining information for the control group and the treatment group
2. ....... “there are significant differences in fiscal revenue and spending gaps and the degree of fiscal independence between cities in China”. To prove this statement, it needs scientific reasons that must be presented by the author, then it needs to be compared with previous research
3. .......“fiscal pressure from local governments has a significant negative impact on environmental protection investment from businesses located in cities with low levels of fiscal independence”. This opinion needs theoretical support from the results of previous studies
Author Response
Dear Reviewer,
Thanks for your positive and constructive comments and suggestions on my manuscript entitled “Local Fiscal Pressure and Enterprise Environmental Protection Investment under COVID-19: Evidence from China” (sustainability-2277525).
I have studied the comments and revised the manuscript carefully.
Please see the attachment.
I would like to express my great appreciation to you for comments on my paper. Looking forward to hearing from you.
Thank you and beat regards.
Sincerely,
Jing Ren
Author Response File: Author Response.pdf
Reviewer 3 Report
Dear Colleagues,
Thank you for an interesting manuscript that describes Local Fiscal Pressure under the Impact of CIVOD-19 and Enterprise Environmental Protection Investment in China. You have done great work.
However, there are some pieces of advice that will make your work better. I hope.
1. In your introduction is unclear what your research problem is, You are providing additional evidence or statements starting from political and finishing experts opinions, however, scholars usually solve the research problem that either comes from literature or you are stating that indeed nobody in the world research this and we are the first.
2. What I am hence missing (or was perhaps more expecting) when looking at the research question: Where the government's substantial efforts last year to boost the fiscal pressure in China? Can this be illustrated with data?
2. Your literature review is weak and requires some more sources for the current topic. You can use some work from another part of the world like: Dvorak, J. "Response of the Lithuanian municipalities to the First Wave of COVID-19." Baltic Region 13, no. 1 (2021): 70-88.
Kańduła, S., & Przybylska, J. (2021). Financial instruments used by Polish municipalities in response to the first wave of COVID-19. Public Organization Review, 21(4), 665-686.
You need to expand your literature review as now you are a little contribution to the world scholarship.
3. I missed the discussion section in the text.
4. It will be great to have some context information data on local finance in China as now it is the article for people who know everything in China but the journal is global and readers want to know some China governance matters too.
Thank you for your attention & good luck!
Author Response
Dear Reviewer,
Thanks for your positive and constructive comments and suggestions on my manuscript entitled “Local Fiscal Pressure and Enterprise Environmental Protection Investment under COVID-19: Evidence from China” (sustainability-2277525).
I have studied the comments and revised the manuscript carefully.
Please see the attachment.
I would like to express my great appreciation to you for comments on my paper. Looking forward to hearing from you.
Thank you and beat regards.
Sincerely,
Jing Ren
Author Response File: Author Response.pdf
Round 2
Reviewer 1 Report
The paper has been improved. Now the manuscript can be accepted for publication.
Reviewer 3 Report
Dear Colleagues,
Thank you for the updated manuscript.
All the best
