A Study of the Pricing and Profitability of Each Manufacturer Under the Dual-Credit Policy Based on the New Energy Vehicle Battery Recycling Credit Scheme

As the number of new energy vehicles has increased, so has the number of discarded batteries and the issue of battery recycling. Most of the existing double credit models only consider the competition between car manufacturers and do not consider battery recycling. So this paper considers a model of competition between two car manufacturers under a dual-credit policy where the battery manufacturer earns points for recycling its batteries. The impact of changes in the value of the points earned by battery manufacturers for recycling batteries on the price and profitability of each manufacturer is examined. It is found that in the case where the battery manufacturer recycles the battery with points, the optimal price of each manufacturer is lower than the optimal price of recycling the battery without points, and the total profit of each manufacturer is higher than the total profit of recycling the battery without points. And as the integral value of recycled batteries becomes larger, the profit of producing each new energy vehicle increases, and the total profit of battery manufacturers and manufacturers that only produce new energy vehicles increases.