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Research Articles

Optimal choice of power battery joint recycling strategy for electric vehicle manufacturers under a deposit-refund system

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Pages 7281-7301 | Received 25 Mar 2022, Accepted 04 Nov 2022, Published online: 23 Nov 2022
 

Abstract

In recent years, worldwide electric vehicle (EV) sales have experienced rapid growth, and recycling an enormous quantity of spent power batteries has become a challenge. This study aims to explore the optimal joint recycling strategy from the EV manufacturer’s perspective by using game theory-based models. The model investigates four kinds of joint recycling strategies: 1) nonalliance (NA) mode, 2) alliance with the power battery manufacturer (APBM) mode, 3) alliance with the third-party recycler (ATPR) mode, and 4) integrated alliance (IA) mode. The results show that: 1) A deposit-refund system can effectively increase the recycling rate. However, an excessive upfront disposal fee will reduce overall profits. 2) For the closed-loop supply chain, the optimal alliance mode depends on the intensity of recycling competition. When recycling competition is fierce, the IA mode is the best alliance mode. When recycling competition is weak, the NA mode is the optimal choice from the recycling rate perspective, and the APBM mode is the optimal choice from the total profit perspective. 3) For the EV manufacturer, the alliance in which its proportion of the extra joint profit is highest tends to be the optimal choice.

Acknowledgments

This work was supported by the National Natural Science Foundation of China (No. 72071006) and the Doctoral Scientific Research Foundation of Shandong Jianzhu University (No. X21006Z). Dr. Xiaoqian Hu acknowledges financial support from the Capital University of Economics and Business of Beijing Municipal Universities’ Basic Scientific Research Funds, China (XRZ2021067).

Disclosure statement

No potential conflict of interest was reported by the author(s).

Data availability statement

The authors confirm that the data supporting the findings of this study are available within the article.

Additional information

Funding

This work was supported by the Capital University of Economics and Business of Beijing Municipal Universities’ Basic Scientific Research Funds: [Grant Number XRZ2021067]; the Doctoral Scientific Research Foundation of Shandong Jianzhu University: [Grant Number X21006Z]; the National Natural Science Foundation of China: [Grant Number 72071006].

Notes on contributors

Xin Li

Xin Li is a lecturer in the College of Management Engineering, Shandong Jianzhu University, China. She received a Ph.D. from Beijing Jiaotong University (BJTU) in 2020. Her research interests include green logistics and supply chain, energy policy, and systems engineering. She has published in Resources, Conservation and Recycling, and Environmental Engineering and Management Journal.

Jianbang Du

Jianbang Du is a Postdoctoral Research Fellow at the Upper Great Plains Transportation Institute. He received his Doctor of Philosophy degree in Environmental Toxicology and two Master’s degrees in Environmental Toxicology and Industrial Engineering. Dr. Du’s research interest includes on-road safety assessment, rail safety assessment and improvement, mobile sourced air pollution, operations research, eco-transportation, and intelligent transportation system.

Pei Liu

Pei Liu is an associate professor in the Business School, Shandong University, China. He received a Ph.D. from Beijing Jiaotong University (BJTU) in 2017. He was a postdoctoral fellow at the Department of Building Science of Tsinghua University from 2017 to 2019. His research interests include green supply chain, green finance and green building, energy policy, and systems engineering. He has published over 10 papers in various journals, such as Transportation Research Part D: Transport and Environment, Applied Energy, Building and Environment, Journal of Cleaner Production, and Journal of Environmental Management.

Chao Wang

Chao Wang is a professor in the College of Economics and Management, Beijing University of Technology, China. He received a Ph.D. from Beijing Jiaotong University (BJTU) in 2015 with joint training at Purdue University in 2013 and 2014. He was a postdoctoral fellow at the Physics of Boston University from 2017 to 2019. His research interests include complexity economics, sustainable supply chains, and complex networks. He has published over 70 papers in various journals, such as Omega, Resources, Conservation and Recycling, Cities, Ecological Economics, Transportation Research Part A/D, Applied Energy, and International Journal of Production Research.

Xiaoqian Hu

Xiaoqian Hu is an associate professor in the School of Management and Engineering, Capital University of Economics and Business, China. She received a Ph.D. from Beihang University in 2020. Her research focus on the complexity of economic systems, complex networks and data mining. She has published over 10 papers in various journals, such as Resources, Conservation and Recycling, Ecological Economics, and Cities.

Pezhman Ghadimi

Pezhman Ghadimi received the M.Eng. degree in industrial engineering from University Technology Malaysia (UTM) in 2011 and a Ph.D. degree in industrial engineering and operations management from the University of Limerick (UL), Limerick, Ireland, in 2015. From 2012 to 2015, while conducting his Ph.D. research, he was employed as a researcher at the Engineering Research Centre (ERC), UL, to conduct research in the area of knowledge management and product lifecycle management. He is currently employed as an assistant professor of manufacturing systems at the School of Mechanical & Materials Engineering at the University College Dublin (UCD). His research interests span a number of areas. He has been active in sustainability, procurement, multiagent systems and operations research and in designing assessment techniques. He pursues theoretical research on the area of sustainable supply chain management and operations. He has published over 45 papers in various journals, such as Resources, Conservation and Recycling, European Journal of Operations Research, Computers and Industrial Engineering, International Journal of Production Research and Journal of Cleaner Production.

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