Who should lead raw materials collection considering regulatory pressure and technological innovation

Abstract Government regulations have increased pressure on emissions-producing manufacturers. Due to regulatory pressure, manufacturers begin to invest in green technologies to reduce emissions, and collect end-of-life products as recycled raw materials. This paper analyzes who should lead raw materials collection, the manufacturer, the retailer or the third-party Internet recycling platform, from the perspectives of environmental benefit, economic benefit and social welfare. Among three collection models, the third-party incorporates technological innovation to filter and classify recycled products according to quality. Our results suggest, firstly, regulatory pressure serves as an effective emission-curbing measure in the forward logistics. Secondly, the effect of emission reduction investment under the third party-led collection is superior to that under the other two collection models. Thirdly, from the perspective of economic benefit, the optimal recycling channel for manufacturers is related to the fixed cost of establishing a recycling channel. From the perspectives of environmental benefit and social welfare, the third party-led collection is the optimal strategy.