Electric vehicle battery secondary use under government subsidy: A closed-loop supply chain perspective
Electric vehicle batteries should normally be removed from electric vehicles when their power capacity fall to 70% ~ 80% of new batteries. However, removed batteries can still be secondary used for other purposes, such as energy storage, before remanufacturing. To promote electric vehicle battery se...
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| Published in: | International journal of production economics Vol. 234; p. 108035 |
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| Main Authors: | , , , , |
| Format: | Journal Article |
| Language: | English |
| Published: |
Elsevier B.V
01.04.2021
Elsevier Science Publishers |
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| ISSN: | 0925-5273, 1873-7579 |
| Online Access: | Get full text |
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| Abstract | Electric vehicle batteries should normally be removed from electric vehicles when their power capacity fall to 70% ~ 80% of new batteries. However, removed batteries can still be secondary used for other purposes, such as energy storage, before remanufacturing. To promote electric vehicle battery secondary use, this research studies a two-period battery secondary use closed-loop supply chain model consisting of a battery (re)manufacturer, a secondary user and a government. The government may provide subsidies for the secondary users to incentivize electric vehicle battery secondary use. It is found that, only when the recycled batteries' remaining power capacity is relatively high or their remanufacturing rate is relatively low, the government will consider a subsidy. In addition, under government's subsidy regulation, secondary battery users need to determine the quantities of batteries with relatively high power capacity for secondary use. Theoretically, this study enriches the research field of sustainable development of electric vehicle battery industry. Practically, this study also helps practitioners to better manage closed-loop supply chains with battery secondary use, and to enhance supply chain efficiency. Also, this study contributes to governments' regulatory decisions toward electric vehicle industries to balance economy and sustainability in society. |
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| AbstractList | Electric vehicle batteries should normally be removed from electric vehicles when their power capacity fall to 70% ~ 80% of new batteries. However, removed batteries can still be secondary used for other purposes, such as energy storage, before remanufacturing. To promote electric vehicle battery secondary use, this research studies a two-period battery secondary use closed-loop supply chain model consisting of a battery (re)manufacturer, a secondary user and a government. The government may provide subsidies for the secondary users to incentivize electric vehicle battery secondary use. It is found that, only when the recycled batteries' remaining power capacity is relatively high or their remanufacturing rate is relatively low, the government will consider a subsidy. In addition, under government's subsidy regulation, secondary battery users need to determine the quantities of batteries with relatively high power capacity for secondary use. Theoretically, this study enriches the research field of sustainable development of electric vehicle battery industry. Practically, this study also helps practitioners to better manage closed-loop supply chains with battery secondary use, and to enhance supply chain efficiency. Also, this study contributes to governments' regulatory decisions toward electric vehicle industries to balance economy and sustainability in society. |
| ArticleNumber | 108035 |
| Audience | Trade |
| Author | Ieromonachou, Petros Huang, Hongfu Zhou, Li Gu, Xiaoyu Shi, Xiutian |
| Author_xml | – sequence: 1 givenname: Xiaoyu surname: Gu fullname: Gu, Xiaoyu organization: School of Economics and Management, Nanjing University of Science and Technology, Nanjing, China – sequence: 2 givenname: Li surname: Zhou fullname: Zhou, Li email: zl14@gre.ac.uk organization: Department of Systems Management and Strategy, University of Greenwich, London, United Kingdom – sequence: 3 givenname: Hongfu surname: Huang fullname: Huang, Hongfu organization: School of Economics and Management, Nanjing University of Science and Technology, Nanjing, China – sequence: 4 givenname: Xiutian surname: Shi fullname: Shi, Xiutian organization: School of Economics and Management, Nanjing University of Science and Technology, Nanjing, China – sequence: 5 givenname: Petros surname: Ieromonachou fullname: Ieromonachou, Petros organization: Department of Systems Management and Strategy, University of Greenwich, London, United Kingdom |
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| Copyright | 2021 Elsevier B.V. COPYRIGHT 2021 Elsevier Science Publishers |
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