Reseller or join? Recycling model selection in the EV power battery closed-loop supply chain under carbon trading

Abstract

With the introduction of carbon trading policy, the recycling of EV power batteries has become an important part of achieving sustainable development. This article examines two closed-loop supply chain recycling models for EV batteries: the reseller recycling model (R) and the joint recycling model (C). Using a Stackelberg game framework, we derive the optimal strategies for both models and then employ sensitivity analysis and numerical experiments to assess the impact of critical parameters (e.g., recycling rate, carbon trading price, competition intensity) on their performance. This article finds that the wholesale and retail prices remain the same no matter which recycling model is selected in the forward supply chain, while the joint recycling model achieves a higher recycling rate and lower carbon emissions in the reverse chain. Under carbon trading policy, the joint recycling mode yields superior comprehensive performance in both environmental and economic dimensions. The research perspective is practical and meets the development requirements of low-carbon economy.