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Electric vehicle battery secondary use under government subsidy: a closed-loop supply chain perspective

Electric vehicle battery secondary use under government subsidy: a closed-loop supply chain perspective

Gu, Xiaoyu, Zhou, Li ORCID: 0000-0001-7132-5935, Huang, Hongfu, Shi, Xiutian and Ieromonachou, Petros ORCID: 0000-0002-5842-9585 (2021) Electric vehicle battery secondary use under government subsidy: a closed-loop supply chain perspective. International Journal of Production Economics:108035. ISSN 0925-5273 (doi:https://doi.org/10.1016/j.ijpe.2021.108035)

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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.

Item Type: Article
Uncontrolled Keywords: Battery secondary use, Recycle and remanufacturing, Incentive policy design
Subjects: T Technology > TS Manufactures
Faculty / Department / Research Group: Faculty of Business
Faculty of Business > Department of Systems Management & Strategy
Faculty of Business > Networks and Urban Systems Centre (NUSC)
Faculty of Business > Networks and Urban Systems Centre (NUSC) > Connected Cities Research Group
Last Modified: 17 Mar 2021 19:08
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None
Selected for REF2021: None
URI: http://gala.gre.ac.uk/id/eprint/30974

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