Effect of carbon trading scheme and technological advancement on the decision-making of power battery closed-loop
Jianling Jiao1,2,3, Zhengtao Pan1,2,3, Jingjing Li4,5,6
1School of Management, Hefei University of Technology, Hefei, Anhui, China.
Abstract:
Optimising the decision-making of a power battery closed-loop supply chain (CLSC) and establishing a well-organised recycling system of waste power batteries are key to avoiding environmental pollution and wastage of resources, as well as realising green and sustainable development of a power battery CLSC. Combined with game theory and system dynamics, we explore the impact of the carbon trading scheme (CTS) and technological advancements on the power battery CLSC model. The results show the following: 1). At the initial stage of introducing CTS, more free carbon quotas increase the production of power batteries and social welfare. However, recycling and echelon utilisation are impeded, and carbon emissions of power battery CLSC increase. Reduced free carbon quotas and the rise of carbon trading prices promote recycling and echelon utilisation of waste power batteries, and carbon emissions reduce, but the production of power batteries and social welfare suffer a lot. 2). Technological advancement is more effective than CTS to promote recycling and echelon utilisation and reduce carbon emissions. 3). When technology becomes mature, it is appropriate to introduce CTS. At that moment, the combination of CTS, mature technology, and moderate competition recycling market is the best way to optimise the decision-making of power battery CLSC.
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