Abstract:The recycling process of spent power batteries has strong negative externalities. In order to promote the establishment of compensation mechanism for spent power batteries, the negative externalities of spent power batteries were analyzed in detail, which were divided into three categories: waste of resources, destruction of ecological environment and damage to health and safety. By using the user cost model, the damage environment cost measurement model and the human resource method model, the negative externalities in the recycling process were quantified, the resource depletion cost quantification model. The ecological environment damage quantification model and the health and safety damage quantification model were built. Based on the above models, the negative externalities compensation mechanism of spent power batteries was studied, including the subject and object,compensation standards and compensation methods of resource compensation, ecological environment compensation, health and safety compensation, etc. According to the manifestations of negative externalities, it is considered that the setting of the compensation mechanism needs to consider indicators such as the amount of waste power battery recycling and metal recovery rate, evaluate the negative externalities caused by the ecological environment in detail, and quantify the possible damage to human health.