Analysis Formal and Informal Sector on Lead Acid Battery: A System Dynamics Approach
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Abstract
With the increasing number of motor vehicles in Indonesia, it also increases the number of lead acid batteries (LAB) LAB one of electric powers used in motor vehicles. They can be recycled and reuse as again a battery of the vehicle. Therefore, it is interested to conduct research specially to see how a circular supply chain of LAB and how it affects the environment using a system dynamics approach. We use the causal loop diagrams to map the circular supply chain of LAB and design a simulation model using stock and flow diagrams. We also provide a discussion on how the formal and informal sectors competes in this very emerging market. It is expected that there will be regulations from the government to increase market share of the formal sector to support the informal sector so that it could carry out recycling processes like the formal one in order to reduce negative impacts on the environment. There are 5 scenarios used in the simulation model experiment, namely tax reduction on formal recycler, subsidy on formal recycler, subsidy or discount on LAB price, combination of tax reduction and subsidy on formal recycler and standardized price of LAB and lead in formal and informal sectors. Of the five scenarios, the best result is that subsidizing formal recycler can increase the formal old LAB market share to 64% from 47% and the excreted lead can decrease by approximately 1,200 kg/month.
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This work is licensed under a Creative Commons Attribution 4.0 International License.
This work is licensed under a Creative Commons Attribution 4.0 International License.
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