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Second Use Value of China’s New Energy Vehicle Battery: A View Based on Multi-Scenario Simulation

Author

Listed:
  • Lei Zhang

    (School of Economics and Management, Beijing Jiaotong University, Beijing 10044, China)

  • Yingqi Liu

    (School of Economics and Management, Beijing Jiaotong University, Beijing 10044, China)

  • Beibei Pang

    (School of Economics and Management, Beijing Jiaotong University, Beijing 10044, China)

  • Bingxiang Sun

    (School of Electrical Engineering, Beijing Jiaotong University, Beijing 10044, China)

  • Ari Kokko

    (Asian Research Center, Copenhagen Business School, 2000 Frederiksberg, Denmark)

Abstract

Nowadays, many countries are actively seeking ways to solve the energy crisis and environmental pollution. New Energy Vehicle (NEV) has become an important way to solve these problems. With the rapid development of NEV, its batteries need to be replaced with new batteries after 5–8 years. Therefore, whether the second use of NEV’s battery has commercial or social value becomes a research hotspot. The innovation of this paper is to use the cost-benefit method to determine the value influencing factors of NEV’s battery second use, and use system dynamics to perform scenario simulation analysis. The methods used in this paper are the cost-benefit method and system dynamics method. Firstly, this paper systematically analyzes the cost and benefit factors that affect the second use value of China’s NEV batteries and uses system dynamics to establish the relationship and value model among various factors. Then, this paper compares the value of battery energy storage between old batteries and new batteries. According to the cost-income factor analysis, this paper eventually selects specific factors and uses VENSIM software to carry out the multi-scenario simulation. The results show that NEV’s battery second use has commercial and social value compared to new battery energy storage. Moreover, battery cost, government subsidies, and electricity prices are three important factors that affect the second use value of China’s NEV battery. Changing the government’s cash subsidy methods, such as providing free batteries or combining new energy to reduce on-grid tariffs, will help increase the second use value of the NEV battery. In the future, the second use value of China’s NEV battery industry will be more significant, with the update of the technology, the surge in the number of NEV’s used batteries, and government support.

Suggested Citation

  • Lei Zhang & Yingqi Liu & Beibei Pang & Bingxiang Sun & Ari Kokko, 2020. "Second Use Value of China’s New Energy Vehicle Battery: A View Based on Multi-Scenario Simulation," Sustainability, MDPI, vol. 12(1), pages 1-25, January.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:1:p:341-:d:303960
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    Cited by:

    1. Xichen Lyu & Yingying Xu & Dian Sun, 2021. "An Evolutionary Game Research on Cooperation Mode of the NEV Power Battery Recycling and Gradient Utilization Alliance in the Context of China’s NEV Power Battery Retired Tide," Sustainability, MDPI, vol. 13(8), pages 1-27, April.
    2. Bernhard Faessler, 2021. "Stationary, Second Use Battery Energy Storage Systems and Their Applications: A Research Review," Energies, MDPI, vol. 14(8), pages 1-19, April.
    3. Bernhard Faessler & Aleksander Bogunović Jakobsen, 2021. "Autonomous Operation of Stationary Battery Energy Storage Systems—Optimal Storage Design and Economic Potential," Energies, MDPI, vol. 14(5), pages 1-12, March.
    4. Yana Buravleva & Decai Tang & Brandon J. Bethel, 2021. "Incentivizing Innovation: The Causal Role of Government Subsidies on Lithium-Ion Battery Research and Development," Sustainability, MDPI, vol. 13(15), pages 1-16, July.

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