The choice of recycling and remanufacturing strategy for power battery supply chain under carbon border adjustment mechanism and cap-and-trade
Yingtong Wang, Xiaoyu Ji, Bei Lin
Abstract
China’s export supply chain is subject to a dual carbon policy of foreign carbon border adjustment mechanism and domestic cap-and-trade. How to determine the optimal remanufacturing strategy to maximize utility, meet carbon emission requirements, increase remanufacturing proportion under the dual carbon policy are the real issues the power battery supply chain faces. This study examines the uncertain carbon trading price, establish Stackelberg game models with and without blockchain under different recycling modes. The selection of recycling and remanufacturing strategies under the dual carbon policy is analyzed in three dimensions: resource recycling rate, economic utility, carbon emission. Moreover, the study explores how the dual carbon policy and blockchain influence remanufacturing decisions, manufacturer utility, carbon emissions. Finally, extended studies are conducted on supply chain coordination, extreme carbon price fluctuation and product quality differences. The findings suggest that enterprises ought to select different remanufacturing strategy from multiple dimensions of resource recycling rate, economic utility, carbon emission, in accordance with the carbon emission range of products and the carbon reduction effect of blockchain technology under the dual carbon policy. This research provides strategic support to export enterprises in tackling the new green trade barriers.