Study on the Selection of Recycling Strategies for the Echelon Utilization of Electric Vehicle Batteries under the Carbon Trading Policy

Yue Qi, Weixin Yao () and Jiagui Zhu
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Yue Qi: Glorious Sun School of Business and Management, Donghua University, 1882 West Yan’an Road, Shanghai 200051, China
Weixin Yao: Glorious Sun School of Business and Management, Donghua University, 1882 West Yan’an Road, Shanghai 200051, China
Jiagui Zhu: Glorious Sun School of Business and Management, Donghua University, 1882 West Yan’an Road, Shanghai 200051, China

Sustainability, 2024, vol. 16, issue 17, 1-30

Abstract: Global climate change has prompted all sectors of society to take urgent action to reduce carbon emissions. Electric vehicles are the key to low-carbon transportation transformation, but their popularity has led to difficulties in disposing of used batteries. Improper handling will pollute the environment and violate the original goal of promoting low-carbon practices. Therefore, it is crucial to establish a sustainable battery-recycling and disposal system. This study uniquely incorporates the concept of battery echelon utilization into its analytical framework using a Stackelberg game model, exploring the equilibrium strategies for stakeholders in a closed-loop supply chain under carbon emission constraints. We analyzed the impact of multiple factors in the recycling process, as well as the influence of digital technology, on enterprise pricing, recycling efficiency, and the choice of recycling channels. The study found that the market pricing of batteries and electric vehicles is not influenced by recycling participants, but is instead related to the application of digital technology. Numerical simulations further reveal that the battery’s echelon utilization rate and carbon emission limit policies jointly motivate enterprises to be more proactive in recycling. In the joint recycling model, battery suppliers can achieve more substantial profit growth compared to electric vehicle manufacturers, providing new insights and directions for innovation and the development of collaborative models within the supply chain.

Keywords: electric vehicle battery recycling; closed-loop supply chains; echelon utilization; carbon emissions (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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