The mechanism of retired power batteries recycling through blockchain token incentives

Abstract

With the development of the electric vehicle industry, an increasing number of power batteries are reaching retirement. It is essential to return retired power batteries to formal recycling channels. To tackle the shortcomings in combating unqualified recyclers in traditional government subsidy and target responsibility models, the paper adopts the design science research method and proposes a novel approach that combines the roles of government and the market. Firstly, a token incentive mechanism is introduced and designed. Secondly, the shortcomings of the traditional models are analyzed, and the advantages of the token incentive models are highlighted. Finally, we examine the influence of different models on the manufacturer profits and social benefits. The results show that the token incentive model can combat the unqualified recyclers effectively, but the manufacturers will pay more cost within their capacity to bear expenses. In addition, the token incentive model yields more significant.significant social benefits.