Optimizing Reverse Logistics Network for Waste Electric Vehicle Batteries: The Impact Analysis of Chinese Government Subsidies and Penalties

Zhiqiang Fan, Xiaoxiao Li (), Qing Gao and Shanshan Li
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Zhiqiang Fan: Energy Economy Research Center, School of Business Administration, Henan Polytechnic University, Jiaozuo 454003, China
Xiaoxiao Li: Energy Economy Research Center, School of Business Administration, Henan Polytechnic University, Jiaozuo 454003, China
Qing Gao: Energy Economy Research Center, School of Business Administration, Henan Polytechnic University, Jiaozuo 454003, China
Shanshan Li: School of Finance and Economics Administration, Henan Polytechnic University, Jiaozuo 454003, China

Sustainability, 2025, vol. 17, issue 9, 1-25

Abstract: The rapid development of the new energy vehicle industry has resulted in a significant number of waste electric vehicle batteries (WEVBs) reaching the end of their useful life. The recycling of these batteries holds both economic and environmental value. As policy is a critical factor influencing the recycling of waste electric vehicle batteries, its role in the network warrants deeper investigation. Based on this, this study integrates both subsidy and penalty policy into the design of the waste electric vehicle battery reverse logistics network (RLN), aiming to examine the effects of single policy and policy combinations, thereby filling the research gap in the existing literature that predominantly focuses on single-policy perspectives. Considering multiple battery types, different recycling technologies, and uncertain recycling quantities and qualities, this study develops a fuzzy mixed-integer programming model to optimize cost and carbon emission. The fuzzy model is transformed into a deterministic equivalent form using expected intervals, expected values, and fuzzy chance-constrained programming. By normalizing and weighting the upper and lower bounds of the multi-objective functions, the model is transformed into a single-objective optimization problem. The effectiveness of the proposed model and solution method was validated through an empirical study on the construction of a waste electric vehicle battery reverse logistics network in Zhengzhou City. The experimental results demonstrate that combined policy outperforms single policy in balancing economic benefits and environmental protection. The results provide decision-making support for policymakers and industry stakeholders in optimizing reverse logistics networks for waste electric vehicle batteries.

Keywords: waste electric vehicle batteries; reverse logistics network design; combined policy; mixed-integer programming model (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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