Comparisons of government policies for electric automobile battery recycling using system dynamics

Abstract

This paper established an electric automobile closed-loop chain and obtained optimal pricing and carbon reduction strategies. Then, the system dynamics (SD) method was adopted to define the electric automobile battery closed-loop supply chain (CLSC) boundary. By constructing the stock flow diagram, the linkages between the government module, the positive supply chain module, and the backward recycling module in the CLSC system were visualized, and how emission trading and recycling policies affect decision-making was explained. Furthermore, the full-chain revenue, recovery rate, government revenue, and outlays of eight policy options were simulated. The results indicated that a policy mix was significantly better than a single policy from the perspective of full-chain revenue and the recovery rate. Combining an allowance policy and a deposit–return system could result in greater revenue for the government. Recycling technology advancement and growth in green consumption tendencies enhance the performance of recycling policies.