Second Use Value of China’s New Energy Vehicle Battery: A View Based on Multi-Scenario Simulation

Lei Zhang, Yingqi Liu, Beibei Pang, Bingxiang Sun and Ari Kokko
Additional contact information
Lei Zhang: School of Economics and Management, Beijing Jiaotong University, Beijing 10044, China
Yingqi Liu: School of Economics and Management, Beijing Jiaotong University, Beijing 10044, China
Beibei Pang: School of Economics and Management, Beijing Jiaotong University, Beijing 10044, China
Bingxiang Sun: School of Electrical Engineering, Beijing Jiaotong University, Beijing 10044, China

Sustainability, 2020, vol. 12, issue 1, 1-25

Abstract: Nowadays, many countries are actively seeking ways to solve the energy crisis and environmental pollution. New Energy Vehicle (NEV) has become an important way to solve these problems. With the rapid development of NEV, its batteries need to be replaced with new batteries after 5–8 years. Therefore, whether the second use of NEV’s battery has commercial or social value becomes a research hotspot. The innovation of this paper is to use the cost-benefit method to determine the value influencing factors of NEV’s battery second use, and use system dynamics to perform scenario simulation analysis. The methods used in this paper are the cost-benefit method and system dynamics method. Firstly, this paper systematically analyzes the cost and benefit factors that affect the second use value of China’s NEV batteries and uses system dynamics to establish the relationship and value model among various factors. Then, this paper compares the value of battery energy storage between old batteries and new batteries. According to the cost-income factor analysis, this paper eventually selects specific factors and uses VENSIM software to carry out the multi-scenario simulation. The results show that NEV’s battery second use has commercial and social value compared to new battery energy storage. Moreover, battery cost, government subsidies, and electricity prices are three important factors that affect the second use value of China’s NEV battery. Changing the government’s cash subsidy methods, such as providing free batteries or combining new energy to reduce on-grid tariffs, will help increase the second use value of the NEV battery. In the future, the second use value of China’s NEV battery industry will be more significant, with the update of the technology, the surge in the number of NEV’s used batteries, and government support.

Keywords: battery; second use; energy storage; value; scenario simulation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/1/341/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/1/341/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:1:p:341-:d:303960

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().