The battery-swapping electric vehicle (SEV) is an example of a circular economy (CE) business model, which has been increasingly urged by governments. To facilitate battery circularity, governments offer incentive schemes, such as the reward-penalty mechanism (RPM) aimed at encouraging battery recycling, and special purchase (SP) subsidies for SEVs aimed at promoting CE business models. However, which incentive is more conducive to environmental and social welfare remains unclear. To address thi