Research on the trade-in modes for electric vehicle power batteries under deposit and fund policies

Abstract

Recycling power batteries has gained attention as electric vehicles (EVs) develop rapidly. Governmen deposit and fund policies encourage battery recycling and cascade utilization. Thus, we construct six trade-in modes for battery supplier, EV manufacturer, and external recycler as recycle entity under deposit and fund policies. Supply chain member profits, battery recycling rate, environmental impact, and social welfare are compared between modes. The results are as follows: (1) Deposit policy has a greater battery recycling rate and lower environmental impact than fund policy, so the best trade-in mode is with the EV manufacturer as recycling entity; (2) Battery supplier and EV manufacturer gain more from the fund policy when recycling themselves, whereas external recycler prefers the deposit policy; (3) Battery supplier recycling under ‘high deposit-high subsidy’ is more likely to promote social welfare, while EV manufacturer recycling under ‘high deposit-low subsidy’ will help the government balance revenue and expenditure.