Research on Power Battery Recycling in the Green Closed-Loop Supply Chain: An Evolutionary Game-Theoretic Analysis

Abstract

The used power batteries of new energy vehicles have become a combined issue of environmental pollution, resource scarcity, and economic sustainability. Power battery recycling is inevitably becoming the key link in the formation of the green closed-loop supply chain for new energy vehicles and the green cycle of the new energy vehicles industry. This study establishes a three-party evolutionary game model of “new energy vehicle manufacturers, power battery manufacturers, and power battery recyclers”, simulates the dynamic evolution process of each game player’s strategy, and analyzes the effects of the digital transformation factor and other factors leading to the evolution trend. The main results show that: (i) in the absence of sufficient incentives and constraints, the green closed-loop power battery supply chain cannot be formed naturally; (ii) digital transformation is an important factor in the journey of the green closed-loop supply chain for power battery recycling, and (iii) government rewards and penalties can promote the formation of the green closed-loop supply chain for power batteries. This research innovatively investigates the concept of the green closed-loop power battery supply chain and its formation mechanism, which provides theoretical support to promote the recycling of used power batteries to achieve sustainability.

Game Models for Ordering and Channel Decisions of New and Differentiated Remanufactured Products in a Closed-Loop Supply Chain with Sales Efforts

“…Moreover, under the emergency ordering strategy, the order quantities in both the integrated and decentralized scenarios decrease, while the total profit of the CLSC increases. As expected, the total channel profits in the integrated scenario are higher than those in the decentralized scenario, proving that the performance in the integrated scenario for a CLSC is better [4]. This conclusion is independent of the presence or absence of an emergency ordering strategy.…”

“…It indicates that the manufacturer has more power in the CLSC. From the channel structure aspect, consistent with Corollaries 3 and 6, it is illustrated that the order quantities are generally higher in the integrated scenario than in the decentralized scenario both with and without emergency orders [4]. Moreover, the order quantity of remanufactured product is not sensitive to the channel structure under different levels of sales efforts.…”

“…The existing literature confirms the important role of sales efforts in improving consumers' acceptance of remanufactured products [3]. In recent years, Mondal and Giri [4] constructed a two-cycle, green, closed-loop supply chain model in which the market demand depends on selling price, green level, and sales effort and studied the effects of green innovation, sales effort, and waste product recovery rate on CLSCs. Yang et al [13] discussed how the level of sales effort of retailers affects the economic performance and sustainability of remanufacturing.…”

“…that the order quantities are generally higher in the integrated scenario than in the decentralized scenario both with and without emergency orders [4]. Moreover, the order quantity of remanufactured product is not sensitive to the channel structure under different levels of sales efforts.…”

“…In a CLSC, in on addition producing new products, manufacturers carry out remanufacturing using remanufacturable end-of-life products. Some consumers strongly agree that they tend to buy socially responsible and environmentally friendly products [4]. However, most consumers are keptical and take a wait-and-see approach with remanufactured products.…”