The behavioural evolution of the smart electric vehicle battery reverse supply chain under government supervision

Abstract

PurposeRecycling and reuse of the electric vehicle (EV) batteries are ways to extend their limited lives. If batteries can be traced from production to recycling, it is beneficial for battery recycling and reuse. Using blockchain technology to build a smart EV battery reverse supply chain can solve the difficulties of lack of trust and data. The purpose of this study is to discuss the behavioural evolution of a smart EV battery reverse supply chain under government supervision.Design/methodology/approachThis study adopts evolutionary game theory to examine the decision-making behaviours of the government, EV manufacturers with recycled used batteries and third-party EV battery recyclers lacking professional recycling qualification.FindingsOn the smart reverse supply chain integrated by blockchain technology, a cooperative recycling strategy of the third-party EV battery recycler is the optimal choice when the government tends to actively regulate. The probability of the EV manufacturer choosing the blockchain adoption strategy exceeds (below) the threshold, and the government prefers negative (positive) supervision. According to numerical analysis, in the mature stage in the EV battery recycling industry, when the investment cost of applying blockchain is high, EV manufacturers' willingness to apply blockchain slows down, the government accelerates adopting a negative supervision strategy and third-party EV battery recyclers prefer cooperative recycling.Practical implicationsThe results of this study provide opinions on the strength of government supervision and the conditions under which EV manufacturers and third-party EV battery recyclers should apply blockchain and cooperate. On the other hand, this study provides theoretical analysis for promoting the application of blockchain technology in smart reverse supply chain.Originality/valueCompared with previous research, this study reveals the relevance of government supervision, blockchain application and cooperation strategy in smart EV battery reverse supply chain. In the initial stage, even if the subsidy (subsidy reduction rate) and penalty are high and the penalty reduction rate is low, the EV manufacturer should rather give up the application of blockchain technology. In the middle stage in the EV battery recycling industry, the government can set a lower subsidy (subsidy reduction rate) combined with a penalty or a higher penalty (penalty reduction rate) combined with a subsidy to supervise it. The third-party EV battery recycler is advised to cooperate with the EV manufacturer when the subsidy is low or the penalty is high.