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Driving Mechanism of Power Battery Recycling Systems in Companies

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  • Baojian Zhang

    (School of Management Science and Engineering, Shanxi University of Finance and Economics, Taiyuan 030000, China)

  • Jianqiang Li

    (School of Management Science and Engineering, Shanxi University of Finance and Economics, Taiyuan 030000, China)

  • Xiaohang Yue

    (School of Business, University of Wisconsin-Milwaukee, Milwaukee, WI 53211, USA)

Abstract

In recent years, international environmental and public health research has become a hot topic, and battery recycling, which is often mentioned separately from waste disposal, has likewise become an academic topic. Battery recycling research is beneficial not only for controlling toxic and harmful substances, but also for public health. In addition, battery recycling brings value-added benefits to company management. As the most important link in the battery supply chain, the driving mechanism of battery recycling in the new electric vehicle industry will become particularly important. The subject of battery recycling is diverse, and the relationships among influencing factors are complex, thereby presenting a fluctuating state. Against this background, this study constructs a system dynamics model from the perspective of a main sorting and recycling system, a technological innovation subsystem and a replacement subsystem. Moreover, this study examines the driving mechanism of the power battery recycling system of a microlevel company. Focusing on the systematic impact of technological innovation capability and substitution, we find that the technological innovation drive of companies increases the total effect of required costs and product demands. It is embodied in two aspects, that is, the increase in the recovery rate leads to an increase in demand, whereas the increase in actual expenditures is less than the increase in technology-driven benefits. After technological innovation capability is improved, the effect of the technological innovation multiplier on the driving mechanism of companies is shown as rapid response time changes. In the substitution component of a company recycling system, we find that the maximum substitution rate limiting expectations has no significant impact on product differentiation. The leading effect of technological innovation capability is more obvious than that of substitution activity. Based on these findings, several suggestions for company operation and environmental governance are presented.

Suggested Citation

  • Baojian Zhang & Jianqiang Li & Xiaohang Yue, 2020. "Driving Mechanism of Power Battery Recycling Systems in Companies," IJERPH, MDPI, vol. 17(21), pages 1-21, November.
    • Handle: RePEc:gam:jijerp:v:17:y:2020:i:21:p:8204-:d:440982
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    References listed on IDEAS

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