IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v149y2025ics014098832500595x.html

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

Author

Listed:
  • Yi, Yongxi
  • Fu, Ao
  • Zhang, Aoxiang
  • Li, Yuqiong

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.

Suggested Citation

  • Yi, Yongxi & Fu, Ao & Zhang, Aoxiang & Li, Yuqiong, 2025. "Recycling mode selection for retired batteries incorporating blockchain technology in a dynamic framework," Energy Economics, Elsevier, vol. 149(C).
  • Handle: RePEc:eee:eneeco:v:149:y:2025:i:c:s014098832500595x
    DOI: 10.1016/j.eneco.2025.108768
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S014098832500595X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.eneco.2025.108768?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Yu, Yugang & Luo, Yifei & Shi, Ye, 2022. "Adoption of blockchain technology in a two-stage supply chain: Spillover effect on workforce," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 161(C).
    2. Ma, Deqing & Hu, Jinsong, 2022. "The optimal combination between blockchain and sales format in an internet platform-based closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 254(C).
    3. De Giovanni, Pietro, 2020. "Blockchain and smart contracts in supply chain management: A game theoretic model," International Journal of Production Economics, Elsevier, vol. 228(C).
    4. Zhou, Yu & Yan, Shuangqi & Li, Gendao & Xiong, Yu & Lin, Zhibin, 2023. "The impact of consumer skepticism on blockchain-enabled sustainability disclosure in a supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).
    5. Long, Qingqi & Tao, Xiaoying & Chen, Yunting & Chen, Yingni & Xu, Le & Zhang, Shuzhu & Zhang, Jie, 2022. "Exploring combined effects of dominance structure, green sensitivity, and green preference on manufacturing closed-loop supply chains," International Journal of Production Economics, Elsevier, vol. 251(C).
    6. Yi, Yongxi & Fu, Ao & Zhang, Sheng & Li, Yuqiong, 2024. "Dynamic pricing and joint carbon reduction strategies at the production and consumption end in a dual-channel fuel vehicle supply chain," Energy Economics, Elsevier, vol. 131(C).
    7. Zhi-Ping Fan & Xue-Yan Wu & Bing-Bing Cao, 2022. "Considering the traceability awareness of consumers: should the supply chain adopt the blockchain technology?," Annals of Operations Research, Springer, vol. 309(2), pages 837-860, February.
    8. Niu, Baozhuang & Dong, Jian & Liu, Yaoqi, 2021. "Incentive alignment for blockchain adoption in medicine supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    9. Tang, Yanyan & Zhang, Qi & Li, Yaoming & Li, Hailong & Pan, Xunzhang & Mclellan, Benjamin, 2019. "The social-economic-environmental impacts of recycling retired EV batteries under reward-penalty mechanism," Applied Energy, Elsevier, vol. 251(C), pages 1-1.
    10. Zhu, Mengping & Liu, Zhixue & Li, Jianbin & Zhu, Stuart X., 2020. "Electric vehicle battery capacity allocation and recycling with downstream competition," European Journal of Operational Research, Elsevier, vol. 283(1), pages 365-379.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yi, Yongxi & Fu, Ao & Li, Yuqiong & Zhang, Aoxiang, 2024. "Battery recycling and coordination in information leakage prevention under blockchain technology in a new energy vehicles supply chain," Energy Economics, Elsevier, vol. 139(C).
    2. Zhitao Xu & Adel Elomri & Roberto Baldacci & Laoucine Kerbache & Zhenyong Wu, 2024. "Frontiers and trends of supply chain optimization in the age of industry 4.0: an operations research perspective," Annals of Operations Research, Springer, vol. 338(2), pages 1359-1401, July.
    3. Tianjian Yang & Chunmei Li & Xiongping Yue & Beibei Zhang, 2022. "Decisions for Blockchain Adoption and Information Sharing in a Low Carbon Supply Chain," Mathematics, MDPI, vol. 10(13), pages 1-23, June.
    4. Zou, Zichen & Liu, Mingwu & Gong, Yu & Dong, Xinwei & Duan, Jiang, 2025. "Examining the effects of blockchain technology on sales models: A study from the dual perspectives of economy and environment," International Journal of Production Economics, Elsevier, vol. 281(C).
    5. Gao, Jinwu & Jiang, Shuman & Zhang, Yi, 2024. "To adopt blockchain or not? A game theoretic analysis of profit and environmental impact in decommissioned EV lithium-ion battery recycling," Applied Energy, Elsevier, vol. 367(C).
    6. Awasthy, Prakash & Haldar, Tanushree & Ghosh, Debabrata, 2025. "Blockchain enabled traceability — An analysis of pricing and traceability effort decisions in supply chains," European Journal of Operational Research, Elsevier, vol. 321(3), pages 760-774.
    7. Cao, Cejun & He, Yufan & Liu, Yang & Huang, Hao & Zhang, Fanshun, 2025. "Blockchain technology adoption mechanism for semiconductor chip supply chains considering information disclosure under cost-sharing contract," International Journal of Production Economics, Elsevier, vol. 282(C).
    8. Jinxuan Song & Xu Yan, 2023. "Impact of Government Subsidies, Competition, and Blockchain on Green Supply Chain Decisions," Sustainability, MDPI, vol. 15(4), pages 1-27, February.
    9. Liu, Chang-Yi & Wang, Hui & Tang, Juan & Chang, Ching-Ter & Liu, Zhi, 2021. "Optimal recovery model in a used batteries closed-loop supply chain considering uncertain residual capacity," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    10. Xu, Xiaoping & He, Ping & Zhou, Li & Cheng, T.C.E., 2023. "Coordination of a platform-based supply chain in the marketplace or reselling mode considering cross-channel effect and blockchain technology," European Journal of Operational Research, Elsevier, vol. 309(1), pages 170-187.
    11. Pattanayak, Sirsha & Ramkumar, M. & Goswami, Mohit & Rana, Nripendra P., 2024. "Blockchain technology and supply chain performance: The role of trust and relational capabilities," International Journal of Production Economics, Elsevier, vol. 271(C).
    12. Liu, Samuel Shuai & Ma, Benedict Jun & Zhang, Weijian & Cheng, Edwin T.C. & Li, Xiaowei & Ng, Chi-To, 2025. "Eliminating information asymmetry in supply chains: Blockchain-driven or not," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 201(C).
    13. Niu, Baozhuang & Ruan, Yiyuan & Xu, Haotao, 2023. "Turn a blind eye? E-tailer's blockchain participation considering upstream competition between copycats and brands," International Journal of Production Economics, Elsevier, vol. 265(C).
    14. Chen, Jiumei & Zhang, Wen & Gong, Bengang & Zhang, Xiaoqi & Li, Hongping, 2022. "Optimal policy for the recycling of electric vehicle retired power batteries," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    15. Cao, Yu & Yi, Chaoqun & Wan, Guangyu & Hu, Hanli & Li, Qingsong & Wang, Shouyang, 2022. "An analysis on the role of blockchain-based platforms in agricultural supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 163(C).
    16. Changhua Liao & Qihui Lu & Ying Shui, 2022. "Governmental Anti-Pandemic and Subsidy Strategies for Blockchain-Enabled Food Supply Chains in the Post-Pandemic Era," Sustainability, MDPI, vol. 14(15), pages 1-23, August.
    17. Zhu, He & Hu, Jiayao & Yang, Ying, 2025. "Towards a circular supply chain for retired electric vehicle batteries: A systematic literature review," International Journal of Production Economics, Elsevier, vol. 282(C).
    18. Zhu, Shichao & Xia, Yusen & Yu, Lean & Li, Jian, 2025. "Leveraging blockchain technology to prevent deceptive disclosure of ESG compliance," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 203(C).
    19. Li, Qingying & Ma, Manqiong & Shi, Tianqin & Zhu, Chen, 2022. "Green investment in a sustainable supply chain: The role of blockchain and fairness," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 167(C).
    20. Wang, Yitong & Fan, Ruguo & Chen, Rongkai & Xie, Xiao & Ke, Can, 2025. "Exploring the coevolution dynamics of residents and recyclers in electric vehicle battery recycling decisions on the two-layer heterogeneous complex networks," Applied Energy, Elsevier, vol. 382(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:149:y:2025:i:c:s014098832500595x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.