Optimal policy for the recycling of electric vehicle retired power batteries

Jiumei Chen, Wen Zhang, Bengang Gong, Xiaoqi Zhang and Hongping Li

Technological Forecasting and Social Change, 2022, vol. 183, issue C

Abstract: How to design subsidy policies to promote the recycling of retired power batteries (RPBs) of electric vehicles (EVs) is the focus of the sustainable development of EVs. In this paper, we consider a supply chain with one EV manufacturer and one power battery manufacturer, and construct game models to compare three policies that have emerged in industry practice, namely, no policy subsidy, subsidy for endurance level and one time quota subsidy, respectively. We show that subsidies are more beneficial than no subsidy and the two subsidy policies are suitable for different situations. Without considering the subsidy budget, one time subsidy is better. Specifically, under different corresponding thresholds, the wholesale price of batteries, the endurance level, the quantity of EVs, the profits of battery manufacturers, the profits of EV manufacturers, consumer surplus and social welfare are higher, and the retail price of EVs is lower. In addition, with subsidy budget constraints, the subsidy for endurance level is better, specifically, the wholesale price of batteries, the endurance level, EV production quantity, EV manufacturer’s profit and consumer surplus are higher; under different corresponding thresholds, the retail price of EVs is lower, the profits of battery manufacturers and social welfare are higher.

Keywords: Retired power batteries; Recycling; Subsidy; Electric vehicle; Game theory (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0040162522004516
Full text for ScienceDirect subscribers only

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:eee:tefoso:v:183:y:2022:i:c:s0040162522004516

DOI: 10.1016/j.techfore.2022.121930

Access Statistics for this article

Technological Forecasting and Social Change is currently edited by Fred Phillips

More articles in Technological Forecasting and Social Change from Elsevier
Bibliographic data for series maintained by Catherine Liu ().