Eco-Label Strategy Selection for Green Product Development in Supply Chain

We look into a supply chain where a manufacturer and a supplier collaborated on green innovation projects. The impacts of self-labeling and certification label on the creation of green products, corporate profitability, and social welfare are evaluated while taking consumer environmental awareness and consumer trust into account. The findings indicate that: (1) under the certification label strategy, the manufacturer and supply chain profits may decline as consumer environmental awareness rises. (2) The supplier makes more money under the certification label, despite the manufacturer's propensity to adopt the self-labeling strategy. (3) When the certification cost is low and consumer trust is lower than a particular threshold, the social welfare under the certification label may be higher than that under the self-labeling. Furthermore, we upgrade the certification label from a single-level label to a multi-level label. It has been discovered that when the manufacturer's green investment cost coefficient is low, its profit grows as the certification level increases. Additionally, the manufacturer may choose the multi-level certification label strategy over the self-labeling strategy