Mitigating the environmental impact of used express packaging has become an urgent imperative for firms seeking to assume environmental responsibility. Here, we considered a closed-loop supply chain comprising a package manufacturer and a logistics firm and explored the optimal green innovation strategy (upstream-invest, downstream-invest, or collaboration). First, we observed that, contingent upon the specific entity undertaking green innovation and the associated investment efficiency, heightened consumer environmental awareness does not unilaterally increase recycling volume, nor does it invariably diminish the recycling incentives of logistics firms. Second, due to the high investment threshold, cooperative innovation is difficult to achieve. However, when the manufacturer considers environmental, social, and governance (ESG) dual-purpose, it prefers to achieve collaboration by shouldering a larger share of the innovation investment, thereby creating win‑win scenarios. Third, when the logistics firm invests in green innovation independently or cooperatively, the manufacturer's green innovation level increases monotonically with its ESG concern in both scenarios. This strategic framework can optimize green innovation investments in circular packaging and meet consumer environmental expectations while maintaining a performance advantage.
Citation: Shuli Yang, Junwu Chai, Zhifeng Qian. Green innovation strategies for circular express packaging[J]. Journal of Industrial and Management Optimization, 2026, 22(7): 3480-3503. doi: 10.3934/jimo.2026127
Mitigating the environmental impact of used express packaging has become an urgent imperative for firms seeking to assume environmental responsibility. Here, we considered a closed-loop supply chain comprising a package manufacturer and a logistics firm and explored the optimal green innovation strategy (upstream-invest, downstream-invest, or collaboration). First, we observed that, contingent upon the specific entity undertaking green innovation and the associated investment efficiency, heightened consumer environmental awareness does not unilaterally increase recycling volume, nor does it invariably diminish the recycling incentives of logistics firms. Second, due to the high investment threshold, cooperative innovation is difficult to achieve. However, when the manufacturer considers environmental, social, and governance (ESG) dual-purpose, it prefers to achieve collaboration by shouldering a larger share of the innovation investment, thereby creating win‑win scenarios. Third, when the logistics firm invests in green innovation independently or cooperatively, the manufacturer's green innovation level increases monotonically with its ESG concern in both scenarios. This strategic framework can optimize green innovation investments in circular packaging and meet consumer environmental expectations while maintaining a performance advantage.
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