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Utilizing Blockchain Technology to Enhance Echelon Recycling Selection in Power Batteries Through Traceability Mechanisms


A recent study analyzed two recycling models, Propositions 1 and 2, to determine the optimal decisions for manufacturers, retailers, echelon utilizers, and third-party recyclers. The study found that the relationship between key factors such as wholesale price, blockchain technology embedding, retail price, and consumer demand remains consistent under both models. Furthermore, Corollary 1 revealed that power battery sales and recycling are independent decisions for manufacturers, and the choice of recycling mode does not impact sales decisions.

Corollary 2 showed that the profit of manufacturers increases with the residual rate of power batteries entering the dismantling and utilization stage. Additionally, embedding blockchain technology can reduce the cost of using recycled materials, ultimately increasing manufacturers’ profits. The study also highlighted the importance of consumer preference for traceability information in enhancing manufacturers’ profits.

Corollary 3 explored the transfer prices of manufacturers and echelon utilizers in both recycling models. The study found that transfer prices are higher in Mode I compared to Mode II due to scenarios used by echelon utilizers and battery capacity saturation. Additionally, the study concluded that competition intensity and consumer recycling sensitivity can impact recycling prices in both modes.

Overall, the study provides valuable insights for stakeholders in the recycling industry and highlights the importance of factors such as blockchain technology, cost optimization, and consumer preferences in maximizing profits and improving supply chain efficiency.

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Photo credit www.nature.com

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