Impact of policies on carbon and lead emissions in a closed loop lead–acid battery supply chain

Abstract

In this study, we investigate the impact of emission policies on the lead–acid battery (LAB) ecosystem in mitigating emissions. We develop a system dynamics model for the closed loop LAB supply chain in the Indian context. Next, we analyze the effect of policies such as carbon tax and green incentives on the lead and carbon emissions of LAB ecosystem. We find that the consequences of policies vary from the unfavorable case of increased carbon and lead emissions to the favorable case of decreased carbon and lead emissions. Our results show an emissions dilemma—a decrease in carbon emissions and an increase in lead excretion in the case of a carbon tax imposed on the organized sector manufacturers and recyclers and vice versa in the case of green incentives given to the organized sector recyclers. As an effective mechanism, we find that imposing a carbon tax only on organized sector manufacturers reduces lead and carbon emissions. Furthermore, from a long-term perspective, extending green incentives to organized manufacturers or simultaneously to both organized manufacturers and recyclers can effectively reduce carbon and lead emissions. Our study identifies the right policies for mitigating different types of emissions simultaneously.