Analysis on the Optimal Recycling Path of Chinese Lead-Acid Battery under the Extended Producer Responsibility System

Abstract

The pollution control problem of discarded lead-acid batteries has become increasingly prominent in China. An extended producer responsibility system must be implemented to solve the problem of recycling and utilization of waste lead batteries. Suppose the producer assumes responsibility for the entire life cycle of lead batteries. In that case, it will effectively reduce environmental pollution caused by non-compliant disposal of waste lead batteries, reduce environmental pollution, and achieve the sustainable development of lead resources. Based on the operating mechanism of the extended responsibility system for lead-acid battery producers in China, this article considers three recycling channel structures: recycling only by manufacturers (mode M), recycling by the union (mode R), and third-party recycling (mode C). This article comprehensively compares the differences between the three recycling channels. The research results show that: (1) under the EPR system, the choice of production companies is affected by the recovery rate and profit rate. (2) By comparing different recycling channel models, we found that the recovery rate of independent recycling by the manufacturer is the largest. Still, the profit rate of the manufacturer that entrusts the alliance (M) to recycle is the highest. The manufacturer can entrust to alliance or independent recycling of waste lead batteries according to the different profit rates and recovery rates. (3) From the perspective of the supply chain, independent recycling (M) by production companies or recycling (R) by the commissioned union may be the best. The choice of recycling channels for producers depends on independent recycling and commissioning alliance’ recycling costs and reuse costs.