Game-Based System Dynamics Simulation of Power Battery Recycling Policy: A Case Study in Shenzhen, China

Posted: 21 Jun 2019

See all articles by Xin Li

Xin Li

Beijing Jiaotong University - School of Economics and Management

Dong Mu

Beijing Jiaotong University - School of Economics and Management

Fu Zhao

Purdue University

Date Written: June 19, 2019

Abstract

Electric vehicle (EV) use is increasing rapidly all over the world. This is especially true in China, which brings a dramatic rise in demand for power batteries. After the end of their service life, irregular disposal of spent power batteries would lead to great threaten to environment and human health. In order to promote recycling of spent power batteries, a deposit-refund mechanism is implemented in Shenzhen: a levy of disposal fee on the purchase of EV, and a subsidy on the recycling. This study aims to explore the effects of deposit-refund policy on the development of power battery recycling industry using game theory and system dynamics methodology. Three single-factor changing scenarios and four two-factors changing scenarios are simulated and analyzed. The results shows that:

1) increasing recycling subsidy, reducing recycling cost, and enhancing consumers’ environmental awareness can effectively improve recycling rate and total profit; in the long run, the improvement effects of enhancing consumers’ environmental awareness are most obvious;

2) Raising levy of disposal fee can effectively make up the recycling subsidy gap caused by increasing recycling subsidy and enhancing consumers’ environmental awareness;

3) Decreasing recycling subsidy will not cause a sharp drop in recycling rate and total profit with the continuous reduction in recycling cost and gradual enhancement of consumers’ environmental awareness.



Note: This work was supported by the National Natural Science Foundation of China (No.71473013).

Suggested Citation

Li, Xin and Mu, Dong and Zhao, Fu, Game-Based System Dynamics Simulation of Power Battery Recycling Policy: A Case Study in Shenzhen, China (June 19, 2019). Abstract Proceedings of 2019 International Conference on Resource Sustainability - Cities (icRS Cities), Available at SSRN: https://ssrn.com/abstract=3406402

Xin Li

Beijing Jiaotong University - School of Economics and Management ( email )

China

Dong Mu (Contact Author)

Beijing Jiaotong University - School of Economics and Management ( email )

China

Fu Zhao

Purdue University

610 Purdue Mall
West Lafayette, IN 47907
United States

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