Emissions Trading Systems, Structure Adjustment and Air Pollution Reduction: Evidence from Enterprises in China
Round 1
Reviewer 1 Report
1、Check Figure 1. Map of pilot cities of emission trading system in China in 202, it is black in my computer. Pay attention to the cartographic specifications. 2、key quantitative analysis findings are suggested to summarize in Abstract .3、Policy recommendations are suggested to Further deepened based on the quantitative analysis results.
Author Response
Please see the attachment.
Author Response File: 
Author Response.pdf
Reviewer 2 Report
Dear authors,
I enjoyed reading your paper. However, I consider that the authors can improve the paper by the following things.
The acronym ETS needs to be reflected in the abstract. What are the policy recommendations of the paper? And what are the conclusions for environmental economics and environmental science? What lessons can this offer for mainland China and other developing countries? The topic of the thesis needs to be deepened. These issues also need to be reflected in the abstract.
In line 44, the introduction of the thesis mentions the issue of environmental protection by entrepreneurs. Here, the author must briefly discuss the role of entrepreneurs in economic development. In addition, whether the free market can play a role in environmental protection. Here, I recommend two references.
Wang, W. H., Moreno-Casas, V., & Huerta de Soto, J. (2021). A free-market environmentalist transition toward renewable energy: The cases of Germany, Denmark, and the United Kingdom. Energies, 14(15), 4659.
Foss, N. J., Klein, P. G., & Bjørnskov, C. (2019). The context of entrepreneurial judgment: organizations, markets, and institutions. Journal of Management Studies, 56(6), 1197-1213.
On line 51, the author mentions state-owned enterprises in mainland China. In fact, the economic circles hold a negative attitude towards the low efficiency of state-owned enterprises. In the view of many Western scholars, China's state-owned enterprises are not only inefficient but also cause pollution. The author should use quantitative analysis to explain separately the above-mentioned related problems caused by state-owned enterprises in the argument. And compare how private enterprises use innovative methods to govern the environment.
On line 105, the graph does not seem to show the data. In addition, the provinces mentioned in the text should also be marked on the map. It should be indicated if the data does not involve Hong Kong, Macao, and Taiwan.
Line 154, why is Nantong the first city in mainland China to implement ETS? Is this related to the relatively high level of economic development of Nantong as a city in the coastal province of Jiangsu Province? Authors need arguments.
Documents appearing on lines 277 and 282 need to list references.
Lines 354 - 357 mention the rent-seeking problem. The author does not analyze why the rent-seeking problem will harm environmental protection. A paper on quantitative analysis is provided here. Here I recommend a reference.
Espinosa, V. I., Peña-Ramos, J. A., & Recuero-López, F. (2021). The political economy of rent-seeking: Evidence from Spain’s support policies for renewable energy. Energies, 14(14), 4197.
There are too many analyses on linear regression in the paper, such as the conclusion of lines 360-361. But where is the causal study of these conclusions? In modern economics papers, discussing correlation without causal analysis is not enough.
The analysis of the regions in line 447 is interesting. Is the success of environmental protection on the southeast coast related to respect for private property rights, entrepreneurship, and local people's awareness of the market economy? The author needs to expand the explanation.
The conclusions in lines 462-463 align with my initial assumptions and reasoning that a market economy is conducive to ETS.
Best,
The reviewer
Author Response
Please see the attachment.
Author Response File: Author Response.pdf
Reviewer 3 Report
Journal: Sustainability
Manuscript Number: Sustainability-2266159
Title: Emissions trading system, structure adjustment and air pollution reduction: Evidence from enterprises in China
The aim of this paper is to explore the nationwide causal estimates of emission trading system’s effect on AP from the enterprise level. According to the Chinese city piloted ETS survey data, the authors employ a multi-period DID model to control potential endogenous problems. The topic is sound and certainly meets the aims of many readers. Whereas, it seems that the paper is relatively well written but there are some places need serious proof-reading. Some more detailed comments are given below.
1. What is the ‘ETS’? Emissions Trading System? Please make normative abbreviations.
2. Please note line 38: The ‘SO2’ should be ‘SO2’？ The similar problems exist elsewhere, please write the specification.
3. The literature review is not sufficient in the introduction, please enrich the relevant literature on the impact of carbon emissions system on air pollution.
4. The authors should pay attention to the normative English presentation, please an English-speaking professional to revise it, for example:
(1) “Nantong in Jiangsu Province is the first city that successfully implemented the first ETS in China in September 2001.”
(2) “For instance, Cheng et al. (2016) argue that if the ETS is implemented in Guangdong, China, its CO2 and NOx emissions will be respectively reduced by 33% and 31%, in 2020 compared with 2010.”
5. The format of mathematical symbols is not standardized, please adjust them to the same height, such as the pages 6-13.
6. Please supplement the basis of the Hypothesis 1 and Hypothesis 2 respectively.
7. Please briefly explain the basis of the formula in the part of the DID Model.
8. The data in Table 1 are insufficiently explained, please explain the results indicated by the data. Other tables have similar problems.
Author Response
Please see the attachment.
Author Response File: Author Response.pdf
Round 2
Reviewer 2 Report
Dear authors,
Thank you so much for your second review. I think you have shown everything clearly. I consider that the paper is well done and ready for being published. Congratulations!
Best,
The reviewe
