Analysis of Recycling Strategy of Waste Power Batteries Driven by Government Subsidies

Abstract

Government subsidies play an important role in the government's effective regulation of the whole industry and in promoting better economic development. This paper introduces channel intrusion into reverse supply chain, applies it to closed-loop supply chain of power battery, and discusses the recycling strategy of waste power battery driven by government subsidy. Based on the key factors affecting power batteries, a tripartite game model of government, recyclers and consumers is constructed. There are government intervention modes such as supervision and subsidy in power battery recycling. Based on government supervision, this paper studies the influence of subsidy on decision-making of recyclers and consumers, so the government has two behavior modes: "subsidy" and "non-subsidy". The example analysis shows that the low amount of government subsidy has a strong incentive effect on improving the recovery rate of power batteries, but it has no obvious effect on increasing the sales of new energy vehicles. The high amount of government subsidies has obvious incentive effect on increasing the sales of new energy vehicles.