Dual-channel green supply chain management with eco-label policy: A perspective of two types of green products

The deterioration of the ecological environment has prompted new requirements for the development of the supply chain. People urgently need to solve the problems of building a green supply chain and formulating reasonable environmental policies. This research considers a green supply chain management problem that includes both retail and direct channels. The government sets a product green standard and offers an environmental subsidy to the manufacturer. Only when the product satisfies the standard can the manufacturer obtain an eco-label. In this study, we focus on two types of green products with different green technologies. This paper is dedicated to revealing the impact that this eco-label policy has on different products. Using game theory and mathematical programming methods, we obtain the optimal prices in the two channels, as well as the optimal green standard and subsidy. By analyzing the results, we find that a growing green standard can increase the environmental benefits of development-intensive green products continuously. However, it is not always good to set increasing green standards for marginal cost-intensive green products. Therefore, the performances of the two types of products are different. These findings allow the manufacturer and the retailer to design suitable strategies for different products. Moreover, these findings also provide guidance to the government when implementing an eco-label policy.