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Assessing the impact of power battery recycling pilot policy on urban energy efficiency: a quasi-natural experiment

  • Yi Wei
  • , Yantong Qu
  • , Kaihua Bao
  • , Ting Zhang
  • , Ya Wen*
  • *Corresponding author for this work

Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review

Abstract

Introduction : The rapid expansion of China’s new energy vehicle industry has brought a wave of large-scale power battery retirement, raising prominent challenges for resource recycling and environmental governance.
Methods : This study focuses on the pilot policy for power battery recycling and utilization (PBRU) launched in 2018. Using panel data from 281 cities in China covering the period 2007–2023, it explores the effects and operational mechanisms of this pilot policy on urban energy efficiency.
Results : The PBRU pilot policy is associated with a notable improvement in urban energy efficiency. Further analysis points to green technological innovation, industrial structure upgrading, and the economic agglomeration effect as possible channels through which this association may operate. Analysis of heterogeneity indicates that the positive impact of the pilot policy is more pronounced in southern cities, central cities, non-resource-based cities, and key environmental protection-focused cities. Further analysis suggests that the pilot policy also curbs the energy rebound effect. Moreover, a decomposition of the energy efficiency measure indicates that the policy is associated with higher economic output and lower pollutant emissions, consistent with the main finding.
Discussion : The conclusions of this study have crucial implications for strengthening the resource recycling system, elevating urban energy efficiency, and promoting green and sustainable development.

© 2026 Wei, Qu, Bao, Zhang and Wen.
Original languageEnglish
Article number1881710
Number of pages17
JournalFrontiers in Environmental Science
Volume14
Online published10 Jul 2026
DOIs
Publication statusPublished - 2026
Externally publishedYes

Funding

The author(s) declared that financial support was received for this work and/or its publication. This research was supported by the Hunan Provincial Natural Science Foundation Project (2026JJ90117), General Project of the Hunan Provincial Department of Education (25C0730).

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 7 - Affordable and Clean Energy
    SDG 7 Affordable and Clean Energy
  2. SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth
  3. SDG 9 - Industry, Innovation, and Infrastructure
    SDG 9 Industry, Innovation, and Infrastructure
  4. SDG 11 - Sustainable Cities and Communities
    SDG 11 Sustainable Cities and Communities
  5. SDG 12 - Responsible Consumption and Production
    SDG 12 Responsible Consumption and Production
  6. SDG 17 - Partnerships for the Goals
    SDG 17 Partnerships for the Goals

Research Keywords

  • difference-in-differences method
  • energy efficiency
  • new energy vehicles
  • power batteries
  • recycling pilot policy

Publisher's Copyright Statement

  • This full text is made available under CC-BY 4.0. https://creativecommons.org/licenses/by/4.0/

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