The Mechanism and Countermeasures of the Impact of State Subsidy Backslide on the Efficiency of Waste-to-Energy Enterprises—A Case Study in China

Round 1

Reviewer 1 Report

The title of the article, the purpose and the applied methods are only partially correlated with each other. It is recommended to specify the purpose of the article. Also, the method and methodology can be more clearly justified in the abstract.

The list of references is very small. It is necessary to adjust the theoretical approach of the analysis and use more different sources of scientific literature, which would enable a deeper scientific discussion, with the help of synthesis, analysis, comparison and/or abstraction.

It is necessary to clarify the title of chapter 2. Not only journals must be reviewed, but also other scientific sources. This section is usually named in connection with the theoretical analysis. All sections of the article must be logically related to each other.

It may be logical to combine the second and third sections. A justification and presentation of the methodology is needed. Taking into account the comments made, it is likely that changes, additions and conclusions should be made

No comments

Author Response

Response table to Reviewer #1

1. Reviewer comment: The title of the article, the purpose and the applied methods are only partially correlated with each other. It is recommended to specify the purpose of the article. Also, the method and methodology can be more clearly justified in the abstract. Author response: I have revised the abstract of the article to introduce the purpose and methodology in the abstract to make the purpose of the article clearer. Change made: Page 1, Line 9-22

2. Reviewer comment: The list of references is very small. It is necessary to adjust the theoretical approach of the analysis and use more different sources of scientific literature, which would enable a deeper scientific discussion, with the help of synthesis, analysis, comparison, and/or abstraction. Author response: I made modifications and highlighted them in the paper. In addition, I have checked the literature carefully and added more references in my revised manuscript to support the idea. Change made: Page 17, Line 468-499

3. Reviewer comment: It is necessary to clarify the title of chapter 2. Not only journals must be reviewed, but also other scientific sources. This section is usually named in connection with the theoretical analysis. All sections of the article must be logically related to each other. It may be logical to combine the second and third sections. A justification and presentation of the methodology is needed. Taking into account the comments made, it is likely that changes, additions, and conclusions should be made. Author response: I have rewritten this part and adjusted the structure of the INTRODUCTION. I have merged the first part and the second part of the previous article. The first part describes the current status of waste-to-energy subsidies in China, introduces the PPP model and BOT projects, highlights the purpose and significance of the article's research, and changes the theoretical foundations of the original third part to the second part, which analyzes the theoretical foundations in detail, is more logical, and provides theoretical foundations for the system dynamics modeling in the third part. Change made: Page 1, Line 26

Author Response File: Author Response.docx

Reviewer 2 Report

1. The literature review section needs to be further improved. Firstly, there is almost no reference literature on waste incineration power generation. What are the advantages, disadvantages, and limitations of using waste to generate electricity? What is the efficiency and input-output of garbage power generation? Is it suitable for large-scale use to replace traditional energy? There is a large amount of literature, and the author needs to supplement it. Secondly, the author proposes that in the realm of public project investment, there are various decision-making methods. What is the scope of application of these decision-making methods? What are the advantages and disadvantages? Why did the author choose a system dynamics model?

It is obvious that the author's literature review is clearly insufficient, and it can be seen from the author's references that there are only 20 articles, which are too outdated, and there has been a serious lack of literature in the past three years.

2. What is the meaning of "T off grid power" in line 175, why are there different font sizes and traces of images?

3. Line 318, （+/-）sign after Rise in garbage disposal volume or rise in garbage combustion heat value needs to be supplemented

4. Line 363, the author proposes to average the data of these five enterprises in order to comprehensively compare the investment and production data of waste power enterprises of different scales and regions and to minimize the model's prediction error. So, what is the relationship between the proposed scenario in Section 5.1 and the differences between these five enterprises and regions mentioned? Or in other words, what is the basis for the author to choose a simulated project in a metropolis that has a population of approximately 5 million individuals located in the central region?

5. On the basis of comment 4, I believe that the author's hypothesis and calculation are not perfect, that is, how will the implementation of garbage power generation projects affect the economic development, energy consumption, electricity prices, and other aspects of the region (a population of approximately 5 million individuals located in the central region)? The author needs to supplement or conduct certain qualitative/quantitative analysis.

6. The reference section is very non-standard. The order of the author and title of the literature is incorrect, the page number is missing, the DOI number is missing, two colons appear, the issue number is missing, and the literature identification (reference 17) is missing. Similar problems are extremely common.

Author Response

Response to Reviewer 2 Comments

1. Reviewer comment：The literature review section needs to be further improved. Firstly, there is almost no reference literature on waste incineration power generation. What are the advantages, disadvantages, and limitations of using waste to generate electricity? What is the efficiency and input-output of garbage power generation? Is it suitable for large-scale use to replace traditional energy? There is a large amount of literature, and the author needs to supplement it. Secondly, the author proposes that in the realm of public project investment, there are various decision-making methods. What is the scope of application of these decision-making methods? What are the advantages and disadvantages? Why did the author choose a system dynamics model? It is obvious that the author's literature review is clearly insufficient, and it can be seen from the author's references that there are only 20 articles, which are too outdated, and there has been a serious lack of literature in the past three years. Author response: （1）Regarding the second part of waste incineration power generation, I have re-added relevant references and adjusted the structure of the paper. This part has been moved to the introduction of the first part. Change made: Page 3, Line 78-89（2）The following are the advantages and disadvantages of waste incineration power generation: Advantages: Waste Reduction: Waste-to-energy helps reduce the volume of waste that goes to landfills, which can help alleviate the strain on limited landfill space. Energy Generation: WTE facilities produce electricity and heat from the combustion of waste materials, contributing to the generation of renewable energy. Resource Recovery: Valuable metals and materials can be recovered from the ash generated during the combustion process, reducing the need for virgin raw materials. Greenhouse Gas Emissions Reduction: While not completely emissions-free, WTE can be more environmentally friendly than traditional landfilling, as it can capture and use some of the gases produced during the waste decomposition process. Base Load Power: WTE can provide a steady and reliable source of energy, helping to meet the base load demand of electricity grids. Economic Benefits: WTE facilities can create jobs, both in the construction and operation phases, and can contribute to local economies. Disadvantages: Air Pollution: The combustion of waste materials can release pollutants into the air, including greenhouse gases, heavy metals, and toxic compounds, contributing to air quality issues and potential health risks. Incomplete Waste Reduction: While WTE reduces the volume of waste, it doesn't eliminate it entirely, and the process still generates ash that needs to be disposed of properly. High Initial Costs: Building and maintaining WTE facilities can be expensive, which can deter investment in regions with limited financial resources. Competition with Recycling: Some argue that investing in WTE infrastructure might divert resources and attention away from efforts to promote recycling and reduce overall waste generation. Public Perception: WTE facilities can face opposition from local communities due to concerns about air quality, health impacts, and the potential for waste importation. Sustainability Concerns: The long-term sustainability of WTE as a renewable energy source is debated, as it still relies on the consumption of fini（3）Regarding the input-output efficiency of waste power generation： In order to understand the level of "energy efficiency" in China's waste-to-energy industry, one project team assisted waste-to-energy brands to continuously achieve "energy saving and efficiency" through technological innovation and admission waste management. The project team based on the "energy efficiency", based on China's "calorific value of waste" valuation and 10 waste incineration brands of "feed-in tariff" data, on the "energy efficiency" of The project team, estimated and compared the "energy efficiency" based on the valuation of the "calorific value of waste" and the "feed-in electricity" data of 10 waste incineration brands in China. Findings: In the middle of 2019-2021, the "energy efficiency" of waste incineration plants under 9 of the 10 waste incineration brands will continue to improve, and the average "energy efficiency" will gradually increase to 57.1%, 60.3%, and 63.6%, but is Below the 65% baseline, the plants are considered "disposal" according to EU standards. Among the 10 waste incineration brands, only Everbright Environment (2019-2021 mid-term), Shenzhen Energy (2020-2021 mid-term), and Conch Venture (2021 mid-term) are higher than the 65% baseline, and according to the EU standard, they can be recognized as "other recovery,e.g. energy recovery". energy recovery". Resources：https://zhuanlan.zhihu.com/p/573098441#%E6%A6%82%E8%A7%88（4）The proposed research is still popular in the field of energy science in China, and many well-known scholars are using System Dynamics in the benefits of waste circular economy, which is conducive to better evaluating the mechanism of engineering and policy tools from the perspective of third-party enterprises and analyzing economic and ecological benefits. Consideration of Complexity: Project investments often involve the interplay of numerous factors, including market fluctuations, competitive dynamics, technological developments, etc. System dynamics helps capture these complex factors and their dynamic relationships, enabling a more comprehensive assessment of project risks and opportunities. Accounting for Time: Project investments typically need to consider impacts over an extended time horizon. System dynamics can simulate time delays and feedback loops, better predicting the long-term performance of projects. Analysis of Feedback Mechanisms: System dynamics excels in analyzing internal positive and negative feedback mechanisms within a system. In project investments, these feedback mechanisms might lead to cyclic fluctuations or cumulative effects. System dynamics can unveil these influences, aiding in making more informed decisions. Sensitivity Analysis: System dynamics allows sensitivity analysis of different parameters and assumptions in the model. This enables investors to evaluate how project performance changes under different conditions, aiding in risk management and planning. Decision Support: System dynamics models can be used for decision support, helping investors better grasp the complexity of projects and anticipate potential future scenarios. This assists in formulating more effective investment strategies. Strategy Optimization: By simulating various decision scenarios, system dynamics can help identify optimized investment strategies to maximize returns or mitigate risks.

2. Reviewer comment：What is the meaning of "T off grid power" in line 175, why are there different font sizes and traces of images? Author response: This is a minor mistake that I didn't notice. The text on the chart was mistakenly placed in the figure.2 due to formatting errors, and I have made the necessary corrections. Change made: Page 3, Line 102.

3. Reviewer comment：Line 318, （+/-）sign after Rise in garbage disposal volume or rise in garbage combustion heat value needs to be supplemented. Author response: Forgot to label, I have added + sign. Change made: Page 6, Line 239.

4. Reviewer comment：Line 363, the author proposes to average the data of these five enterprises in order to comprehensively compare the investment and production data of waste power enterprises of different scales and regions and to minimize the model's prediction error. So, what is the relationship between the proposed scenario in Section 5.1 and the differences between these five enterprises and regions mentioned? Or in other words, what is the basis for the author to choose a simulated project in a metropolis that has a population of approximately 5 million individuals located in the central region? Author response: These 5 companies were selected in the proposed plan because they are highly representative within China. In the "Eleventh Five Year Plan" for the national waste power generation regional market in China, 56 incineration plants (29%) were planned for waste treatment in the central region, 9 incineration plants (7%) were planned for waste treatment in the eastern region, and 7 incineration plants (9%) were planned for waste treatment in the northeast region, There are 4 incineration plants (accounting for 10%) planned for waste treatment in the northwest region, and 6 incineration plants (accounting for 16%) planned for waste treatment in the southwest region. In the golden period of the development of waste incineration power generation during the 12th Five Year Plan period, China's waste incineration treatment will form a situation with the central region as the core and the eastern and western regions accelerating development. At present, over 70% of domestic waste incineration plants in China are concentrated in the central region, which is the main reason for selecting cities with a population of 5 million in the central region. Since 2011, central and western regions such as Changzhi in Shanxi, Lanzhou in Gansu, Chengdu in Sichuan, and Chuxiong in Yunnan have been vigorously developing household waste incineration for power generation. In the future, China's waste incineration power generation industry will still mainly focus on the central region.

5. Reviewer comment： On the basis of comment 4, I believe that the author's hypothesis and calculation are not perfect, that is, how will the implementation of garbage power generation projects affect the economic development, energy consumption, electricity prices, and other aspects of the region (a population of approximately 5 million individuals located in the central region)? The author needs to supplement or conduct certain qualitative/quantitative analyses. Author response: The focus of this article is not too much on the impact of garbage power generation on regional economic development, energy consumption, and other aspects. However, this garbage power generation project was selected during the research, and the ultimate goal is to study the impact of reduced subsidies from the Chinese government on the performance of garbage power generation enterprises and provide feasible suggestions for these enterprises to improve their business efficiency.

6. Reviewer comment：The reference section is very non-standard. The order of the author and title of the literature is incorrect, the page number is missing, the DOI number is missing, two colons appear, the issue number is missing, and the literature identification (reference 17) is missing. Similar problems are extremely common. Author response: I have made significant changes to the format of the references, as the order and content of the article have been extensively revised, resulting in significant changes to the references to ensure correct numbering and page numbers. Change made: Page 17, Line 468-499.

Author Response File: Author Response.pdf

Round 2

Reviewer 2 Report

I think the author has made most of the revisions and provided explanations for some issues. But there are still some minor issues in the reference section, such as references [2], [3], [5], [7-10], [13], missing page numbers and issue numbers of the paper, and there is no a new paper in the revised manuscript? If any, it needs to be added to the references.

I hope the author should make careful revisions.

Author Response

Reviewer comment: There are still some minor issues in the reference section, such as references [2], [3], [5], [7-10], [13], missing page numbers and issue numbers of the paper, and there is no a new paper in the revised manuscript? If any, it needs to be added to the references.

Author response: I feel great thanks for your valuable feedback that I have used to improve the quality of our manuscript. I have seen that your Review Report Form indicated that the references need to be improved. Therefore, I made modifications and highlighted them in the paper. In addition, I have checked the literature carefully and added more references on waste-to-energy in my revised manuscript.

Change made: Page 17, line 907-931

Author Response File: Author Response.docx