Recycling mode selection for retired batteries incorporating blockchain technology in a dynamic framework

Yongxi Yi, Ao Fu, Aoxiang Zhang and Yuqiong Li

Energy Economics, 2025, vol. 149, issue C

Abstract: The rapid growth of the new energy vehicle industry has increased the challenge of recycling retired batteries. While blockchain technology holds potential for improving battery recycling, its role in reducing costs, stimulating demand, and raising recycling rates remains underexplored. This study examines how blockchain can enhance closed-loop supply chains by analyzing a Stackelberg differential game involving a manufacturer, retailer, and recycler. We compare three recycling models, each led by a different stakeholder. Our results show that blockchain adoption boosts recycling rates, pricing, and supply chain profits, regardless of the dominant party. These benefits increase with higher consumer traceability sensitivity, environmental awareness, and the cost-reduction effects of blockchain. Among the three models, retailer-led recycling achieves the highest market demand, recycling rates, and social welfare, while recycler-led recycling performs the worst. This research provides policymakers and industry leaders with key insights to optimize battery recycling strategies.

Keywords: Decommissioned power battery; Recycling; Blockchain; Differential game (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:149:y:2025:i:c:s014098832500595x

DOI: 10.1016/j.eneco.2025.108768

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