The Pricing Strategy of Dual Recycling Channels for Power Batteries of New Energy Vehicles under Government Subsidies

Xiaodong Zhu,Wei Li

doi:10.1155/2020/3691493

Xiaodong Zhu, Wei Li

Open Access

https://doi.org/10.1155/2020/3691493

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Abstract

The vigorous development of the new energy automobile industry has highlighted the issue of efficient recycling of power batteries. Using a Stackelberg game, the pricing mechanism of dual-channel power battery recycling models under different government subsidies is investigated. Consequently, sensitivity analysis and comparison analysis are conducted, providing the pricing decision and the optimal profit of closed-loop supply chain (CLSC) systems. Finally, the effects of recycling efforts, power battery greenness levels, service levels, and consumer green recycling awareness on prices of power batteries and profits are determined through numerical simulations, and the optimal prices under different strategies are compared. The results indicate that recycling prices of each party in the manufacturer subsidy model are relatively high, and consumers’ green awareness and the green levels of power batteries are directly proportional to the recycling prices offered by recycling parties. Automobile 4S stores and recycling networks should pay attention to the balance between the increase in the cost and the quantity of government subsidies for their recycling efforts. For recycling enterprises, maintaining an appropriate service level can maximize their profits and positively motivate the development of them.

Highlights

In recent years, new-energy automobile industry in China has developed rapidly under the impetus of the government, and the sales of new energy vehicles have soared
Pricing decisions and comparative analysis under different government subsidy strategies are performed as well. ird, this paper regards the greenness level of remanufactured batteries and consumers’ green recycling awareness under the government regulations; we introduce the recycling effort and service level for sensitivity simulation analysis and propose countermeasures and recommendations for new energy power battery recycling
According to the industry background of power battery recycling, this paper considers the influence of consumers’ awareness of green recycling, greenness level of power batteries, recycling efforts, and service level of recycling outlets and 4S stores on the pricing strategy of recycling used power battery

Summary

Introduction

New-energy automobile industry in China has developed rapidly under the impetus of the government, and the sales of new energy vehicles have soared. Based on the operating framework of the dual-channel power battery recycling CLSC, the pricing strategies under centralized and decentralized supply chain decision-making are studied separately below. Proposition 2 shows that increased consumer awareness of green recycling will directly increase the quantity of recycled power batteries, the recycling prices, and consumers’ demand for remanufactured products, stimulating manufacturers to produce power batteries. Erefore, the unit remanufactured power battery subsidy quantity is Crt(gm − g) At this time, the profit functions of the manufacturers, the 4S stores, and the recycling networks are πMm ω, pm, t􏼁 ω − Cm􏼁q + Cm − Cr − pm􏼁 qr + qn􏼁. Model N 228.62 218.37 260.61 30 40 government increases subsidies, manufacturers can make higher profits; more money is spent on the dismantling and remanufacturing of power batteries, promoting the long-term development of the new energy industry

Sensitivity Analysis

Theorems

Findings

Propositions