Evolutionary Game Analysis of New-Energy Vehicle Supply Chain Financing: Using Blockchain under Dual-Credit Regulations

Abstract

The implementation of dual-credit regulations in China has not only invigorated the business activities of power battery manufacturers on the supply side but also heightened the financing needs of those manufacturers that are at a disadvantage. Meanwhile, the emergence and development of blockchain technology have presented a novel and effective financing avenue for enterprises in the new-energy vehicle industry, a topic that has yet to be thoroughly explored in existing literature. To address this gap, we propose a new-energy vehicle supply chain finance model grounded in dynamic evolutionary game theory. This model specifically examines the interplay between dual-credit regulations and blockchain technology within a supply chain that comprises a capital-constrained power battery manufacturer and a vehicle manufacturer. We demonstrate that, propelled by the interplay between dual-credit regulations and blockchain technology, the stable equilibrium solution among the three parties is achieved when the financial institution integrates blockchain technology, the power battery manufacturer exhibits trustworthiness, and the vehicle manufacturer opts for repayment. We provide valuable insights into how to effectively address the imbalance in payoffs among supply chain participants and transition from a non-stable to a stable state for all three parties. This is achieved through the careful calibration of key model parameters, including a revenue incentive for the power battery manufacturer, a penalty for default loss for the vehicle manufacturer, the cost of information knowledge, and the magnitude of default loss.

Keywords

New-energy vehicles supply chain / capital constraint / blockchain technology / dual-credit regulations / dynamic evolutionary game

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