Blockchain adoption and recycling decisions for power battery manufacturers under carbon trading policies

Purpose The global new energy vehicle (NEV) industry is advancing rapidly, making the recycling and reuse of waste power batteries a critical issue that significantly hinders the industry’s sustainable growth. To address this challenge, this study aims to investigate the operational decisions of battery manufacturers under a carbon trading policy to improve the recycling rate of used batteries and enhance the sustainability of the supply chain. Design/methodology/approach Build four different models. Under the application of blockchain: manufacturers, retailers and echelon utilization enterprises are all recycling (Model B). Retailers and echelon utilization enterprises both recycle (Model NB). Not applying blockchain: manufacturers, retailers and echelon utilization enterprises are all recycling (Model O). Retailers and echelon utilization enterprises both recycle (Model NO). Findings The results show that adopting blockchain is the best strategy for manufacturers. The adoption of blockchain not only increases the total recovery volume but also enhances the carbon reduction level of manufacturers. Additionally, the decision of manufacturers to participate in recycling depends on the relationship between the recycling competition coefficient(s) and the price sensitivity coefficient (1). When i = 2.83443 s, manufacturers’ participation in recycling can not only improve their own profit but also increase the total recycling amount, but it will reduce the profits of retailers and echelon utilization enterprises. Originality/value This study scientifically introduces blockchain technology and integrates the two key factors of traceability level and cost-sharing ratio in the construction of the model, achieving theoretical innovation and providing novel insights for manufacturers to optimize operational strategies and promote the sustainable development of the NEV industry.