Research on the Impact of Government Subsidies on the Recycling of Electric Bicycle Batteries

Wenbin Cao () and Haoran Mu
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Wenbin Cao: School of Business, Jiangnan University, Wuxi 214122, China
Haoran Mu: School of Business, Jiangnan University, Wuxi 214122, China

Sustainability, 2025, vol. 17, issue 22, 1-21

Abstract: As a critical tool for low-carbon urban transportation, improper disposal of waste batteries from electric bicycles could significantly hinder sustainable development progress. To enhance resource cycling efficiency, this study constructs a sustainable supply chain model involving battery owners, recyclers, and the government, comparing equilibrium outcomes under two subsidy schemes: subsidizing battery owners versus directly subsidizing recyclers. Key findings reveal that when environmental governance costs exceed a critical threshold, subsidies significantly increase recycling volumes while reducing government expenditure. Direct subsidies to recyclers generate stronger price signals, more effectively incentivizing battery owners’ participation and achieving superior policy outcomes. This research provides a quantitative foundation for optimizing environmental governance efficiency and circular economy policies in e-bike battery recycling, demonstrating that targeted subsidies can simultaneously promote ecological sustainability and fiscal effectiveness.

Keywords: waste battery; sustainable supply chain; government subsidies; game-theoretic analysis; circular economy (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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