Brazil’s New Green Hydrogen Industry: An Assessment of Its Macroeconomic Viability Through an Input–Output Approach

Round 1

Reviewer 1 Report

Comments and Suggestions for Authors

The article analyzes the relationship between cryptocurrencies, artificial intelligence and clean energy innovation, reveals the complex relationship between them in the same period and the lag period, and puts forward targeted recommendations based on the research conclusions, which is quite innovative in terms of content and methodology, but there are still the following problems, and it is recommended to further modify and improve them.

First, the article only analyzes the correlation between cryptocurrencies, artificial intelligence and clean energy innovation according to the relevant model, but it is not precise enough to explain the coordination relationship, and it is not clear whether there is a relationship of influence between the three of them.

Secondly, the article's research conclusions are not closely integrated with the stated reasons and backgrounds, and the analysis is not deep enough. In the article, the Russian-Ukrainian conflict is mentioned several times, and the data outliers in the sample period are attributed to the Russian-Ukrainian conflict, is this statement accurate? The authors do not explain the relationship between data anomalies and the Russian-Ukrainian conflict well, and do not give a reasonable reason and logical analysis of the volatility of the data affected by the Russian-Ukrainian conflict. In addition, so far, the Russian-Ukrainian conflict is still going on, with a long time span and many influencing factors, are all the data in the future outliers, and are they all affected by the Russian-Ukrainian conflict? How can we be sure that the fluctuations in the data are only due to the Russian-Ukrainian conflict, given the long sample period and the many factors affecting it? Therefore, attributing the cause to the Russian-Ukrainian conflict is too far-fetched and abrupt.

Thirdly, the modeling methodology is old and unitary, and the reliability and scientific validity of the results need to be improved.

Finally, there are many formatting problems in the article, such as some paragraphs are not capitalized, sometimes R2 is used in the article, sometimes R² is used in the article, and the basic expressions are inconsistent, etc.

 

Comments on the Quality of English Language

The article analyzes the relationship between cryptocurrencies, artificial intelligence and clean energy innovation, reveals the complex relationship between them in the same period and the lag period, and puts forward targeted recommendations based on the research conclusions, which is quite innovative in terms of content and methodology, but there are still the following problems, and it is recommended to further modify and improve them.

First, the article only analyzes the correlation between cryptocurrencies, artificial intelligence and clean energy innovation according to the relevant model, but it is not precise enough to explain the coordination relationship, and it is not clear whether there is a relationship of influence between the three of them.

Secondly, the article's research conclusions are not closely integrated with the stated reasons and backgrounds, and the analysis is not deep enough. In the article, the Russian-Ukrainian conflict is mentioned several times, and the data outliers in the sample period are attributed to the Russian-Ukrainian conflict, is this statement accurate? The authors do not explain the relationship between data anomalies and the Russian-Ukrainian conflict well, and do not give a reasonable reason and logical analysis of the volatility of the data affected by the Russian-Ukrainian conflict. In addition, so far, the Russian-Ukrainian conflict is still going on, with a long time span and many influencing factors, are all the data in the future outliers, and are they all affected by the Russian-Ukrainian conflict? How can we be sure that the fluctuations in the data are only due to the Russian-Ukrainian conflict, given the long sample period and the many factors affecting it? Therefore, attributing the cause to the Russian-Ukrainian conflict is too far-fetched and abrupt.

Thirdly, the modeling methodology is old and unitary, and the reliability and scientific validity of the results need to be improved.

Finally, there are many formatting problems in the article, such as some paragraphs are not capitalized, sometimes R2 is used in the article, sometimes R² is used in the article, and the basic expressions are inconsistent, etc.

 

Author Response

1st. Comment:
The article analyzes the relationship between cryptocurrencies, artificial intelligence and clean energy innovation, reveals the complex relationship between them in the same period and the lag period, and puts forward targeted recommendations based on the research conclusions, which is quite innovative in terms of content and methodology, but there are still the following problems, and it is recommended to further modify and improve them. First, the article only analyzes the correlation between cryptocurrencies, artificial intelligence and clean energy innovation according to the relevant model, but it is not precise enough to explain the coordination relationship, and it is not clear whether there is a relationship of influence between the three of them.

Response: We appreciate the concise and detailed response. However, our paper does not cover the relationships between cryptocurrencies, artificial intelligence, and clean energy. Our work focused on exploring the role of green hydrogen, produced via reforming of ethanol, in supporting Brazil’s transition to a low-carbon economy.

2nd. Comment:
Secondly, the article’s research conclusions are not closely integrated with the stated reasons and backgrounds, and the analysis is not deep enough. In the article, the Russian-Ukrainian conflict is mentioned several times, and the data outliers in the sample period are attributed to the Russian-Ukrainian conflict, is this statement accurate? The authors do not explain the relationship between data anomalies and the Russian-Ukrainian conflict well, and do not give a reasonable reason and logical analysis of the volatility of the data affected by the Russian-Ukrainian conflict. In addition, so far, the Russian-Ukrainian conflict is still going on, with a long time span and many influencing factors, are all the data in the future outliers, and are they all affected by the Russian-Ukrainian conflict? How can we be sure that the fluctuations in the data are only due to the Russian-Ukrainian conflict, given the long sample period and the many factors affecting it? Therefore, attributing the cause to the Russian-Ukrainian conflict is too far-fetched and abrupt.

Response: After careful inspection of the paper, we have not found any mention of the Russian-Ukrainian conflict. However, we look forward to your insightful analysis of our work.

3rd. Comment:
Thirdly, the modeling methodology is old and unitary, and the reliability and scientific validity of the results need to be improved.

Response: Thank you for pointing out this issue. However, considering the previous comments made, we would like to cordially check if this response is regarding our paper.

4th. Comment:
Finally, there are many formatting problems in the article, such as some paragraphs are not capitalized, sometimes R2 is used in the article, sometimes R2 is used in the article, and the basic expressions are inconsistent, etc.

Response: Thank you for highlighting this issue. Given the previous feedback, we kindly wanted to confirm if this response pertains to our paper specifically.

Reviewer 2 Report

Comments and Suggestions for Authors

The paper analyzes the impact of the green hydrogen industry on GDP and employment. 

The objective of the paper as stated in the introduction is not consistent with the results obtained. In the introduction of the paper, the objective is focused on determining the effect of green hydrogen on emissions to see if it can contribute to CO2 emissions targets. But what the paper presents is an IO analysis that basically determines the effects on GDP and employment. 

I understand that hydrogen can contribute to emission reductions, but that is not what is quantitatively analyzed in this paper. For this reason, I believe that the objective and conclusions of the paper should be revised to align the objectives with what is subsequently done.

On the other hand, I would like to find more details about the IO analysis, with the values by sector, e.g. which sectors have been influenced by the initial investment inflows...? which sectors have a greater effect of these inflows? 

Finally, it is necessary to determine what are the limitations of the study, especially as applied to the study using IO tables.   

Author Response

1st. Comment:
The paper analyzes the impact of the green hydrogen industry on GDP and employment. The objective of the paper as stated in the introduction is not consistent with the results obtained. In the introduction of the paper, the objective is focused on determining the effect of green hydrogen on emissions to see if it can contribute to CO2 emissions targets. But what the paper presents is an IO analysis that basically determines the effects on GDP and employment. I understand that hydrogen can contribute to emission reductions, but that is not what is quantitatively analyzed in this paper. For this reason, I believe that the objective and conclusions of the paper should be revised to align the objectives with what is subsequently done. On the other hand, I would like to find more details about the IO analysis, with the values by sector, e.g. which sectors have been influenced by the initial investment inflows...? which sectors have a greater effect of these inflows? Finally, it is necessary to determine what are the limitations of the study, especially as applied to the study using IO tables.

Response: Thank you for pointing out this issue. We removed the effect of green hydrogen on emissions from the manuscript. We recognize that the effect of green hydrogen on emissions was not comprehensively addressed in this study. Given the focus of our analysis on macroeconomic impacts such as GDP growth and employment generation, the environmental impact—specifically, emissions reduction potential—was excluded from the manuscript to maintain a focused scope. Secondly, we believe these questions are responded by Table 3 and Figure 2, respectively. Table 3 and Figure 2 in our manuscript aim to address these questions by presenting the sectors influenced by investment inflows and illustrating the relative magnitude of these impacts. Finally, we appreciate the opportunity to clarify the limitations of our study, particularly regarding the use of input-output (I-O) tables to assess the macroeconomic potential of green hydrogen in Brazil. One key limitation of employing I-O tables lies in their static nature, which restricts our ability to capture dynamic changes in the economy over time, such as shifts in technology, energy prices, or consumer preferences that may affect the outcomes of green hydrogen adoption. Additionally, I-O analysis inherently assumes a fixed structure of production, which may not fully reflect the complex interactions and substitutions that could arise as green hydrogen technology and infrastructure evolve. Consequently, the results should be interpreted as indicative of potential impacts based on the current economic structure, rather than predictive of future conditions.

Reviewer 3 Report

Comments and Suggestions for Authors

The manuscript addresses a relevant domain to advance energy transition towards decarbonisation and presents various aspects in its analysis, such as resource and technology related apects, considering the policy context and economics. It could be improved if authors would add in the Introduction the energy resource distribution for power production, given the fact that electrification of mobility is addressed and this will have an impact if the presence of fossil fuels have an important share.

Author Response

1st. Comment:

The manuscript addresses a relevant domain to advance energy transition towards decarbonisation and presents various aspects in its analysis, such as resource and technology related apects, considering the policy context and economics. It could be improved if authors would add in the Introduction the energy resource distribution for power production, given the fact that electrification of mobility is addressed and this will have an impact if the presence of fossil fuels have an important share. 

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Response:
Thank you for the thoughtful feedback and valuable contributions. The authors appreciate the suggestion to include energy resource distribution for power production in the Introduction. However, we believe this addition would be better suited for future work, as it could provide a more detailed exploration of the topic beyond the current scope of the manuscript. 

Reviewer 4 Report

Comments and Suggestions for Authors

1. I propose adding a chapter "current state of green hydrogen technology in the world".

2. The goals of the work and one's own contribution should be emphasized more.

3. The quality of the figures should be improved. It is worth adding more figures.

4. Table 4 is very short. I propose making a description in the text instead of a table.

5. Can Brazil become a green hydrogen powerhouse?

6. The linguistic correctness should be checked by an English native translator.

Comments on the Quality of English Language

The linguistic correctness should be checked by an English native translator.

Author Response

1st. Comment:

I propose adding a chapter "current state of green hydrogen technology in the world".

Response:
Thank you for the suggestion. After careful consideration, the authors have decided not to add the proposed chapter, as we believe it would be more appropriate for a separate paper. The current study provides sufficient information and engages in a thorough discussion of the subject, aligning with its intended scope and focus.

2nd. Comment:

The goals of the work and one's own contribution should be emphasized more.

Response:
Thank you for highlighting this important aspect. We have reinforced the study's objectives and underscored the contributions to ensure clarity and coherence.

3rd. Comment:

The quality of the figures should be improved. It is worth adding more figures.

Response:
Thank you for pointing out this issue. We have improved the quality of the figures as suggested, and have also enhanced the visual representation of the study's findings.

4th. Comment:

Table 4 is very short. I propose making a description in the text instead of a table.

Response:
Thank you for your suggestion regarding Table 4. We have implemented the recommended change by incorporating a descriptive summary of the data directly into the text. We believe this adjustment aligns well with the manuscript’s structure and provides a clearer presentation of the information.

5th. Comment:

Can Brazil become a green hydrogen powerhouse?

Response:
As contained in the discussing and conclusion of the study, Brazil has significant potential to become a green hydrogen powerhouse, driven by its abundant renewable resources, established ethanol production, and strategic positioning in the global energy transition. The promising trajectory of the green hydrogen sector indicates a capacity to advance economic sustainability, diversify the energy matrix, and reduce carbon emissions. 

Key factors supporting Brazil’s potential include competitive production costs, bolstered by governmental incentives, and the integration of ethanol as a reagent and energy substrate, which paves the way for more sustainable methodologies. Despite the sector’s strategic importance, its limited inter-industry linkages and modest short-term economic spillovers highlight the need for targeted investments and technological advancements. By strengthening backward and forward connections to industries such as equipment manufacturing, renewable energy, and logistics, the green hydrogen sector could enhance its multiplier effects and foster broader economic development.

In the long term, the industry's growth potential is substantial. Policies supporting workforce development, infrastructure investments, and regional inclusion could amplify its contributions. Regions with abundant renewable resources, particularly less industrialized areas, could experience transformative development, addressing economic disparities and fostering inclusive growth.

Brazil's ambition to become a global leader in green hydrogen hinges on its ability to integrate production with local supply chains and leverage its renewable energy assets. This alignment not only supports domestic energy autonomy and climate goals but also enhances industrial competitiveness in the global green technology market. With strategic planning and sustained commitment, Brazil is well-positioned to emerge as a leader in the green hydrogen economy.

6th. Comment:

The linguistic correctness should be checked by an English native translator.

Response:
Thank you for pointing out this issue. We revised the text to make sure that the sentences were better structured, and the text was more fluid. Such changes can be seen in the Abstract and in the Analysis and Results, for example.

Round 2

Reviewer 2 Report

Comments and Suggestions for Authors

The paper has been improved, and can be published