Research On Recycling Strategies Of Used Energy Vehicle Batteries With EPR

The sales of new energy vehicles(EVs)have surged as people pay increasing attention to energy transition and environmental protection.As a key component of new energy vehicles,the service life of EV batteries is limited,which leads to decommissioning tide.The considerable profits of these retired EV batteries have attracted a large number of enterprises to enter the battery recycling and reuse industry.EV battery recycling channels are diversified,and the “regular army” with recycling qualification has become increasingly prominent.Therefore,how to promote the ecological design of EV battery from the source,avoid environmental pollution,and standardize the EV battery recycling industry has an urgent practical need.Extended Producer Responsibility(EPR)is an environmental management system framework and has been adopted by many legislative practices,affecting the market competition and cooperation relationship and other operational decisions(pricing,production and recovery)of EV battery reverse supply chain members.In order to give better play to the role of the government,depict the impact of EPR on the recycling decision of used EV batteries,and design a scientific and optimized recycling mechanism of EV batteries is a key scientific topic to do a good job in the recycling and reuse of used EV batteries,so as to standardize the recycling market of EV batteries.This paper uses Stackelberg game,consumer utility theory and optimization theory,introduces environmental tax,subsidy and reward and punishment mechanism as specific policies for the implementation of EPR system into the EV battery reverse supply chain to study the EV battery recovery decisions,and analyzes the impact of environmental tax,subsidy and reward and punishment mechanism on the operation decision-making of EV battery supply chain from the perspective of the government.This paper mainly completes the following work:Firstly,the paper clarifies the function mechanism of EPR from the aspects of connotation and practice,defines the division of responsibility of EPR on the members of supply chain.This paper summarizes three EV battery recycling modes.This paper describes the impact of EPR on the construction of traceability information system,recycling channels and channel cooperation strategies of used EV batteries recycling.The above laid a foundation for the research on the recycling channel selection and recycling cooperation strategy of used EV batteries under the EPR.Next,the influence of EPR on the selection strategy of EV battery recycling channel is analyzed and considered.Three EV battery recycling channels under the EPR have been summarized,this paper studies the EPR implemented by the government through environmental taxes and subsidies.Three EV battery recycling channel models are constructed according to different recycling members targeted by policies.This paper explores the impact of government EPR on the ecological design level of EV battery,pricing decisions,profits and environmental benefits under different recycling channels.This paper analyzes the relationship between environmental benefits,consumer surplus,social welfare and fiscal revenue and expenditure with taxes,subsidies and ecological design,and discusses the optimal recycling channels for different members.The research shows that: The manufacturer,the retailer and the third-party enterprise all prefer their own recycling channels to obtain greater profits.For consumers,they prefer the manufacturer recycling channel.The EPR system promotes the manufacturer to carry out ecological design of EV batteries,which helps enterprises to shoulder social and environmental responsibilities.The high environmental tax does not encourage the improvement of ecological design,but leads to a decline.The subsidy encourages the manufacturer to improve the eco-design of EV batteries.Finally,the influence of EPR system on EV battery recycling channel cooperation strategies are analyzed and considered.In the existing EV battery recycling channels,third-party recycling enterprises have professional equipment,but in the EV battery recycling market,there are still a large number of non-professional third-party recycling enterprises composed of small business vendors without the qualification of recycling.In view of the competitive relationship between the formal third-party recycling recyclers who have obtained the recycling qualification and the informal third-party recycling recyclers composed of vendors in the EV battery recycling market.This paper explores the construction of a dualchannel reverse supply chain composed of a formal and an informal thirdparty recycling recycler under the influence of government intervention through the EPR system,which under the implementation of subsidies and penalties.This paper analyzes the competition and cooperation strategies of formal and informal third-party recycling recyclers under EPR by comparing and analyzing equilibrium results,profits and environmental impacts.The research shows that: In regard to the formal and informal third-party recycling recyclers’ profitability,compared to the nointervention case,government intervention always hurts the informal thirdparty recycling recycler’s profitability regardless of the two members committing to competition or cooperation.The formal and informal thirdparty recycling recyclers can reach a consensus on cooperation only if the subsidy and penalty are set at sufficiently high levels.