IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v299y2024ics0360544224012180.html
   My bibliography  Save this article

Which policy can effectively promote the formal recycling of power batteries in China?

Author

Listed:
  • Li, Jingjing
  • Wang, Zhaoxin
  • Li, Hui
  • Jiao, Jianling

Abstract

China's power battery recycling (PBR) market is embryonic, facing a 'Gresham's Law’. A critical concern for the government is ascertaining policies that can effectively enhance formal PBR and boost the competitiveness of authorized channels. Our study develops an evolutionary game model incorporating the government, recyclers, and consumers, investigating the impact of subsidies for formal recyclers, consumer subsidies, and deposit refund policies on the formal recycling process. The main conclusions are as follows. (1) The evolutionary strategy for the PBR game system is (non-regulation, formal recycling, green behavior) when recyclers acquire substantial reputation gains from formal recycling, and a non-regulation approach outstrips the government's benefits from regulation. (2) Subsidies for recyclers are more effective in fostering formal recycling of power batteries than consumer subsidies. When the government subsidy to formal recyclers increases from 0 yuan/kWh to 40 yuan/kWh, The evolutionary stable state transitions from (regulation, informal recycling, non-green behavior) to (non-regulation, formal recycling, green behavior). The incentive impact of consumer subsidies is relatively negligible. (3) The deposit refund policy significantly advances formal PBR, with both the increase in deposit amounts and refund ratios capable of reversing the low rates of formal recycling.

Suggested Citation

  • Li, Jingjing & Wang, Zhaoxin & Li, Hui & Jiao, Jianling, 2024. "Which policy can effectively promote the formal recycling of power batteries in China?," Energy, Elsevier, vol. 299(C).
    • Handle: RePEc:eee:energy:v:299:y:2024:i:c:s0360544224012180
    DOI: 10.1016/j.energy.2024.131445
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544224012180
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2024.131445?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Fan, Jing-Li & Li, Zezheng & Ding, Zixia & Li, Kai & Zhang, Xian, 2023. "Investment decisions on carbon capture utilization and storage retrofit of Chinese coal-fired power plants based on real option and source-sink matching models," Energy Economics, Elsevier, vol. 126(C).
    2. Zou, Chen & Huang, Yongchun & Hu, Shiliang & Huang, Zhan, 2023. "Government participation in low-carbon technology transfer: An evolutionary game study," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    3. Fan, Jing-Li & Xu, Mao & Yang, Lin & Zhang, Xian & Li, Fengyu, 2019. "How can carbon capture utilization and storage be incentivized in China? A perspective based on the 45Q tax credit provisions," Energy Policy, Elsevier, vol. 132(C), pages 1229-1240.
    4. Sun, Ya-Fang & Zhang, Yue-Jun & Su, Bin, 2022. "Impact of government subsidy on the optimal R&D and advertising investment in the cooperative supply chain of new energy vehicles," Energy Policy, Elsevier, vol. 164(C).
    5. Chen, Jiumei & Zhang, Wen & Gong, Bengang & Zhang, Xiaoqi & Li, Hongping, 2022. "Optimal policy for the recycling of electric vehicle retired power batteries," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    6. Xin-gang, Zhao & Ling-zhi, Ren & Yu-zhuo, Zhang & Guan, Wan, 2018. "Evolutionary game analysis on the behavior strategies of power producers in renewable portfolio standard," Energy, Elsevier, vol. 162(C), pages 505-516.
    7. Liu, Changyu & Song, Yadong & Wang, Wei & Shi, Xunpeng, 2023. "The governance of manufacturers’ greenwashing behaviors: A tripartite evolutionary game analysis of electric vehicles," Applied Energy, Elsevier, vol. 333(C).
    8. Lili Ding & Zhimeng Guo & Yuemei Xue, 2023. "Dump or recycle? Consumer's environmental awareness and express package disposal based on an evolutionary game model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6963-6986, July.
    9. Berck, Peter & Sears, Molly & Taylor, Rebecca L.C. & Trachtman, Carly & Villas-Boas, Sofia B., 2024. "Reduce, reuse, redeem: Deposit-refund recycling programs in the presence of alternatives," Ecological Economics, Elsevier, vol. 217(C).
    10. Huang, Jianbai & Dong, Xuesong & Chen, Jinyu & Zeng, Anqi, 2023. "The slow-release effect of recycling on rapid demand growth of critical metals from EV batteries up to 2050: Evidence from China," Resources Policy, Elsevier, vol. 82(C).
    11. Fan, Jing-Li & Li, Zezheng & Li, Kai & Zhang, Xian, 2022. "Modelling plant-level abatement costs and effects of incentive policies for coal-fired power generation retrofitted with CCUS," Energy Policy, Elsevier, vol. 165(C).
    12. Zhang, Huiming & Zhu, Kexin & Hang, Zixuan & Zhou, Dequn & Zhou, Yi & Xu, Zhidong, 2022. "Waste battery-to-reutilization decisions under government subsidies: An evolutionary game approach," Energy, Elsevier, vol. 259(C).
    13. Xia, Xiaoning & Li, Pengwei & Cheng, Yang, 2023. "Tripartite evolutionary game analysis of power battery carbon footprint disclosure under the EU battery regulation," Energy, Elsevier, vol. 284(C).
    14. Jorgen W. Weibull, 1997. "Evolutionary Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262731215, April.
    15. Tang, Yanyan & Zhang, Qi & Liu, Boyu & Li, Yan & Ni, Ruiyan & Wang, Yi, 2023. "What influences residents’ intention to participate in the electric vehicle battery recycling? Evidence from China," Energy, Elsevier, vol. 276(C).
    16. Yu, Haijun & Dai, Hongliang & Tian, Guangdong & Wu, Benben & Xie, Yinghao & Zhu, Ying & Zhang, Tongzhu & Fathollahi-Fard, Amir Mohammad & He, Qi & Tang, Hong, 2021. "Key technology and application analysis of quick coding for recovery of retired energy vehicle battery," Renewable and Sustainable Energy Reviews, Elsevier, vol. 135(C).
    17. Guo, Xiaolong & Li, Xiansen & Bian, Junsong & Yang, Chenchen, 2023. "Deposit or reward: Express packaging recycling for online retailing platforms," Omega, Elsevier, vol. 117(C).
    18. Tang, Yanyan & Zhang, Qi & Li, Yaoming & Li, Hailong & Pan, Xunzhang & Mclellan, Benjamin, 2019. "The social-economic-environmental impacts of recycling retired EV batteries under reward-penalty mechanism," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fei Zeng & Zhiping Lu & Chengyu Lu, 2024. "Power Battery Recycling Model of Closed-Loop Supply Chains Considering Different Power Structures Under Government Subsidies," Sustainability, MDPI, vol. 16(21), pages 1-26, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Zezheng & Yu, Pengwei & Xian, Yujiao & Fan, Jing-Li, 2024. "Investment benefit analysis of coal-to-hydrogen coupled CCS technology in China based on real option approach," Energy, Elsevier, vol. 294(C).
    2. Gang Li & Mengyu Lu & Sen Lai & Yonghong Li, 2023. "Research on Power Battery Recycling in the Green Closed-Loop Supply Chain: An Evolutionary Game-Theoretic Analysis," Sustainability, MDPI, vol. 15(13), pages 1-18, July.
    3. Feng, Jianghong & Ning, Yu & Wang, Zhaohua & Li, Guo & Xiu Xu, Su, 2024. "ChatGPT-enabled two-stage auctions for electric vehicle battery recycling," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 183(C).
    4. Liu, Chang-Yi & Wang, Hui & Tang, Juan & Chang, Ching-Ter & Liu, Zhi, 2021. "Optimal recovery model in a used batteries closed-loop supply chain considering uncertain residual capacity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    5. Lequn Zhu & Ran Zhou & Xiaojun Li & Linlin Zhang, 2023. "An Evolutionary Game Analysis of Shared Private Charging Pile Behavior in Low-Carbon Urban Traffic," Sustainability, MDPI, vol. 15(13), pages 1-17, June.
    6. Yi Zheng & Yaoqun Xu, 2023. "Optimizing Green Strategy for Retired Electric Vehicle Battery Recycling: An Evolutionary Game Theory Approach," Sustainability, MDPI, vol. 15(21), pages 1-23, October.
    7. Enci Wang & Jianyun Nie & Yuhan Wang, 2023. "Government Subsidy Strategies for the New Energy Vehicle Power Battery Recycling Industry," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    8. Xia, Xiaoning & Li, Pengwei & Cheng, Yang, 2024. "Economic and environmental evaluation of different collection models for spent power batteries," Energy, Elsevier, vol. 299(C).
    9. Lyu, Zhengwei & Lan, Hongjie & Hua, Guowei & Cheng, T.C.E. & Xu, Yadong, 2024. "How to promote Chinese food waste-to-energy program? An evolutionary game approach," Energy, Elsevier, vol. 293(C).
    10. Jia, Tingwen & Li, Chengjiang & Wang, Honglei & Hu, Yu-jie & Wang, Shiyuan & Xu, Guoteng & Hoang, Anh Tuan, 2024. "Subsidy policy or dual-credit policy? Evolutionary game analysis of green methanol vehicles promotion," Energy, Elsevier, vol. 293(C).
    11. Yang, Peiwen & Dong, Jun & Lin, Jin & Liu, Yao & Fang, Debin, 2021. "Analysis of offering behavior of generation-side integrated energy aggregator in electricity market:A Bayesian evolutionary approach," Energy, Elsevier, vol. 228(C).
    12. Yan, Sizhe & Wang, Weiqing & Li, Xiaozhu & Maimaiti, Pakezhati & Zhao, Yi, 2024. "Cross-regional green certificate transaction strategies based on a double-layer game model," Applied Energy, Elsevier, vol. 356(C).
    13. Dufwenberg, Martin, 1997. "Some relationships between evolutionary stability criteria in games," Economics Letters, Elsevier, vol. 57(1), pages 45-50, November.
    14. Lichi Zhang & Yanyan Jiang & Junmin Wu, 2022. "Evolutionary Game Analysis of Government and Residents’ Participation in Waste Separation Based on Cumulative Prospect Theory," IJERPH, MDPI, vol. 19(21), pages 1-16, November.
    15. Tom Johnston & Michael Savery & Alex Scott & Bassel Tarbush, 2023. "Game Connectivity and Adaptive Dynamics," Papers 2309.10609, arXiv.org, revised Oct 2024.
    16. Gu, Tianqi & Xu, Weiping & Liang, Hua & He, Qing & Zheng, Nan, 2024. "School bus transport service strategies’ policy-making mechanism – An evolutionary game approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 182(C).
    17. Petrohilos-Andrianos, Yannis & Xepapadeas, Anastasios, 2017. "Resource harvesting regulation and enforcement: An evolutionary approach," Research in Economics, Elsevier, vol. 71(2), pages 236-253.
    18. Philippe Jehiel, 2022. "Analogy-Based Expectation Equilibrium and Related Concepts:Theory, Applications, and Beyond," Working Papers halshs-03735680, HAL.
    19. Santipont Ananwattanaporn & Atthapol Ngaopitakkul & Chaiyan Jettanasen, 2023. "Power Quality and Break-Even Points in the Use of Electric Motorcycles in the Case of the Thailand Residential Building," Sustainability, MDPI, vol. 16(1), pages 1-26, December.
    20. Waters, George A., 2009. "Chaos in the cobweb model with a new learning dynamic," Journal of Economic Dynamics and Control, Elsevier, vol. 33(6), pages 1201-1216, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:299:y:2024:i:c:s0360544224012180. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.