Can China’s Policy of Carbon Emissions Trading Optimize Manufacturing Structure? Evidence from Guangdong Based on a Synthetic Control Approach
Round 1
Reviewer 1 Report
This research evaluates the carbon emission trading policy in Guangdong province by comparing the manufacturing structure between Guangdong province and 23 other provinces (or a synthetic province) in mainland China. The authors conclude that a carbon emission trading policy can upgrade manufacturing and make manufacturing greener. The proposed Synthetic Control Method (SCM) seems novel, and some results seem reasonably good, at least based on the figures and tables presented. My only concerns are:
1) The research’s lack of theoretical support to its causal hypothesis. It is not clear why the author used manufacturing structure to measure the outcome of carbon trading policy. Authors may need to provide more information on Guangdong’s carbon trading policy, such as the trading mechanism designed, trading volume (values), the buyers and sellers, the effects on total emission reductions, etc. Are there any other provinces also implemented similar policies? It is also unclear how the manufacturing structure optimization was defined or calculated. Are there any other factors unique to Guangdong that may also impact manufacturing structures after 2013?
2) The time series used before the intervention (carbon trading policy implementation) is extremely short (4 years), given that the synthetic control method typically uses a much longer time series data for the pre-intervention period. Could this be the cause of the discrepancy between ‘Guangdong’ and ‘Synthetic Gruangdong’ before 2013 in Figure 3?
Author Response
Dear Reviewer,
Thank you very much for your time involved in reviewing the manuscript and your very encouraging comments on the merits.
Please see the attachment. We are grateful for your precious time. We remain at your disposal for any further questions.
Yours sincerely.
Corresponding author: Xuan Zhang
E-mail address: [email protected]
Author Response File: 
Author Response.pdf
Reviewer 2 Report
The topic of this paper is very interesting, however it would be great if authors provide the literature about successful stories of carbon emissions trading system in EU as well. Furthermore it is not clear why the determinant as Urban was included in the model. What are the differences between INN and FDI.
Author Response
Dear Reviewer,
Thank you very much for your time involved in reviewing the manuscript and your very encouraging comments on the merits.
Please see the attachment. We are grateful for your precious time. We remain at your disposal for any further questions.
Yours sincerely.
Corresponding author: Xuan Zhang
E-mail address: [email protected]
Author Response File: Author Response.pdf
Round 2
Reviewer 1 Report
NA
