The Impact of a Unified Green Badge Policy on the Ecommerce Platform
Research Article
Open Access
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The Impact of a Unified Green Badge Policy on the Ecommerce Platform

Yuexin Jiang 1*
1 DEastside Preparatory School
*Corresponding author: jiangc98006@gmail.com
Published on 14 October 2025
Journal Cover
AEMPS Vol.225
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-80590-385-7
ISBN (Online): 978-1-80590-386-4
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Abstract

This study examines the impact of a unified green badge policy on sales and seller competition in e-commerce platforms. The Climate Pledge Friendly badge on Amazon exemplifies the benefits of such a badge, including increased sales to eco-conscious consumers, improved product visibility, and enhanced brand trust and loyalty. Despite these advantages, there is limited research on how green badges affect seller competition. We address this gap using a three-stage game model. First, two sellers set their prices and product sustainability levels, considering the marketplace’s commission rate and badge threshold. Second, the marketplace sets the badge threshold and recommends products based on inferred consumer preferences. Third, consumers determine their purchases, and firms realize profits. The equilibrium is characterized by a symmetric pure-strategy perfect Bayesian equilibrium (PBE) under imperfect information. Our findings show that at equilibrium, product prices and demand increase with the probability of adopting the unified green badge, provided certain conditions are met. Market competition also intensifies with the proportion of badged products, especially when these products hold a market share greater than 50%. This research provides strategic insights for sellers on green certification, pricing, and product features, and offers guidance for e-commerce platforms on the benefits of unified eco-labeling practices, aiding in sustainable marketing strategies.

Keywords:

Game Theory, Sustainability, Green Label, Ecommerce, Bayesian Inference

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Jiang,Y. (2025). The Impact of a Unified Green Badge Policy on the Ecommerce Platform. Advances in Economics, Management and Political Sciences,225,1-13.

References

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[2]. C. Cohen, “Is Amazon Climate Pledge Certification Worth It For Sellers?, ” SoStocked.

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[4]. E. Hunter, “Getting Amazon’s Climate Pledge Friendly Badge, ” pattern.

[5]. Y. H. Shin, H. Moon, S. E. Jung, and K. Severt, “The effect of environmental values and attitudes on consumer willingness to pay more for organic menus: A value-attitude-behavior approach, ” Journal of Hospitality and Tourism Management, vol. 33, pp. 113–121, Dec. 2017, doi: 10.1016/j.jhtm.2017.10.010.

[6]. H. Mobrezi and B. Khoshtinat, “Investigating the Factors Affecting Female Consumers’ Willingness toward Green Purchase Based on the Model of Planned Behavior, ” Procedia Economics and Finance, vol. 36, pp. 441–447, 2016, doi: 10.1016/S2212-5671(16)30062-4.

[7]. X. Zhang and F. Dong, “Why Do Consumers Make Green Purchase Decisions? Insights from a Systematic Review, ” Int J Environ Res Public Health, vol. 17, no. 18, p. 6607, Sep. 2020, doi: 10.3390/ijerph17186607.

[8]. G. E. Newman, M. Gorlin, and R. Dhar, “When Going Green Backfires: How Firm Intentions Shape the Evaluation of Socially Beneficial Product Enhancements, ” Journal of Consumer Research, vol. 41, no. 3, pp. 823–839, Oct. 2014, doi: 10.1086/677841.

[9]. Y.-C. Lin and C. A. Chang, “Double Standard: The Role of Environmental Consciousness in Green Product Usage, ” J Mark, vol. 76, no. 5, pp. 125–134, Sep. 2012, doi: 10.1509/jm.11.0264.

[10]. M. G. Luchs, R. W. Naylor, J. R. Irwin, and R. Raghunathan, “The Sustainability Liability: Potential Negative Effects of Ethicality on Product Preference, ” J Mark, vol. 74, no. 5, pp. 18–31, Sep. 2010, doi: 10.1509/jmkg.74.5.018.

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[13]. Y. Mumcu and H. S. Kimzan, “The Effect of Visual Product Aesthetics on Consumers’ Price Sensitivity, ” Procedia Economics and Finance, vol. 26, pp. 528–534, 2015, doi: 10.1016/S2212-5671(15)00883-7.

[14]. J. Clement, T. Kristensen, and K. Grønhaug, “Understanding consumers’ in-store visual perception: The influence of package design features on visual attention, ” Journal of Retailing and Consumer Services, vol. 20, no. 2, pp. 234–239, Mar. 2013, doi: 10.1016/j.jretconser.2013.01.003.

[15]. K. White, D. J. Hardisty, and R. Habib, “The Elusive Green Consumer, ” Harvard Business Review, Aug. 2019.

[16]. W. Evans, “Private Report Shows How Amazon Drastically Undercounts Its Carbon Footprint, ” Reveal News.

[17]. New Hope, “4 things to know about Amazon’s ‘Climate Pledge Friendly’ program.”

[18]. S. Kim, M. J. Karlesky, C. G. Myers, and T. Schifeling, “Why Companies Are Becoming B Corporations, ” Harvard Business Review, Jun. 17, 2016.

[19]. Alexa, “Are ‘Climate Pledge Friendly’ Products on Amazon Really Sustainable?, ” Novel Hand.

[20]. L. Li, J. Chen, and S. Raghunathan, “Recommender System Rethink: Implications for an Electronic Marketplace with Competing Manufacturers, ” Information Systems Research, vol. 29, no. 4, pp. 1003–1023, Dec. 2018, doi: 10.1287/isre.2017.0765.

[21]. Z. (Zachary) Zhong, “Platform Search Design: The Roles of Precision and Price, ” Marketing Science, vol. 42, no. 2, pp. 293–313, Mar. 2023, doi: 10.1287/mksc.2022.1370.

[22]. T.-H. Teh and J. Wright, “Intermediation and Steering: Competition in Prices and Commissions, ” Am Econ J Microecon, vol. 14, no. 2, pp. 281–321, May 2022, doi: 10.1257/mic.20190344.

[23]. R. Inderst and M. Ottaviani, “Competition through Commissions and Kickbacks, ” American Economic Review, vol. 102, no. 2, pp. 780–809, Apr. 2012, doi: 10.1257/aer.102.2.780.

[24]. B. Zhou and T. Zou, “Competing for Recommendations: The Strategic Impact of Personalized Product Recommendations in Online Marketplaces, ” Marketing Science, vol. 42, no. 2, pp. 360–376, Mar. 2023, doi: 10.1287/mksc.2022.1388.

[25]. N. Singh and X. Vives, “Price and Quantity Competition in a Differentiated Duopoly, ” RAND Journal of Economics, vol. 15, no. 4, pp. 546–554, 1984, [Online]. Available: https: //EconPapers.repec.org/RePEc: rje: randje: v: 15: y: 1984: i: winter: p: 546-554

[26]. W. A. Kelly, “A Generalized Interpretation of the Herfindahl Index, ” South Econ J, vol. 48, no. 1, p. 50, Jul. 1981, doi: 10.2307/1058595.

[27]. C. Liston-Heyes and A. Pilkington, “Inventive concentration in the production of green technology: a comparative analysis of fuel cell patents, ” Sci Public Policy, vol. 31, no. 1, pp. 15–25, Feb. 2004, doi: 10.3152/147154304781780190.

References

[1]. R. Runyon, “What Is Amazon Climate Pledge-Friendly & How Does It Grows Your Sales?, ” eva.

[2]. C. Cohen, “Is Amazon Climate Pledge Certification Worth It For Sellers?, ” SoStocked.

[3]. ielsenIQ, “Was 2018 the year of the influential sustainable consumer?”

[4]. E. Hunter, “Getting Amazon’s Climate Pledge Friendly Badge, ” pattern.

[5]. Y. H. Shin, H. Moon, S. E. Jung, and K. Severt, “The effect of environmental values and attitudes on consumer willingness to pay more for organic menus: A value-attitude-behavior approach, ” Journal of Hospitality and Tourism Management, vol. 33, pp. 113–121, Dec. 2017, doi: 10.1016/j.jhtm.2017.10.010.

[6]. H. Mobrezi and B. Khoshtinat, “Investigating the Factors Affecting Female Consumers’ Willingness toward Green Purchase Based on the Model of Planned Behavior, ” Procedia Economics and Finance, vol. 36, pp. 441–447, 2016, doi: 10.1016/S2212-5671(16)30062-4.

[7]. X. Zhang and F. Dong, “Why Do Consumers Make Green Purchase Decisions? Insights from a Systematic Review, ” Int J Environ Res Public Health, vol. 17, no. 18, p. 6607, Sep. 2020, doi: 10.3390/ijerph17186607.

[8]. G. E. Newman, M. Gorlin, and R. Dhar, “When Going Green Backfires: How Firm Intentions Shape the Evaluation of Socially Beneficial Product Enhancements, ” Journal of Consumer Research, vol. 41, no. 3, pp. 823–839, Oct. 2014, doi: 10.1086/677841.

[9]. Y.-C. Lin and C. A. Chang, “Double Standard: The Role of Environmental Consciousness in Green Product Usage, ” J Mark, vol. 76, no. 5, pp. 125–134, Sep. 2012, doi: 10.1509/jm.11.0264.

[10]. M. G. Luchs, R. W. Naylor, J. R. Irwin, and R. Raghunathan, “The Sustainability Liability: Potential Negative Effects of Ethicality on Product Preference, ” J Mark, vol. 74, no. 5, pp. 18–31, Sep. 2010, doi: 10.1509/jmkg.74.5.018.

[11]. L. Hamzaoui Essoussi and J. D. Linton, “New or recycled products: how much are consumers willing to pay?, ” Journal of Consumer Marketing, vol. 27, no. 5, pp. 458–468, Aug. 2010, doi: 10.1108/07363761011063358.

[12]. C. Townsend and S. B. Shu, “When and how aesthetics influences financial decisions, ” Journal of Consumer Psychology, vol. 20, no. 4, pp. 452–458, Oct. 2010, doi: 10.1016/j.jcps.2010.06.013.

[13]. Y. Mumcu and H. S. Kimzan, “The Effect of Visual Product Aesthetics on Consumers’ Price Sensitivity, ” Procedia Economics and Finance, vol. 26, pp. 528–534, 2015, doi: 10.1016/S2212-5671(15)00883-7.

[14]. J. Clement, T. Kristensen, and K. Grønhaug, “Understanding consumers’ in-store visual perception: The influence of package design features on visual attention, ” Journal of Retailing and Consumer Services, vol. 20, no. 2, pp. 234–239, Mar. 2013, doi: 10.1016/j.jretconser.2013.01.003.

[15]. K. White, D. J. Hardisty, and R. Habib, “The Elusive Green Consumer, ” Harvard Business Review, Aug. 2019.

[16]. W. Evans, “Private Report Shows How Amazon Drastically Undercounts Its Carbon Footprint, ” Reveal News.

[17]. New Hope, “4 things to know about Amazon’s ‘Climate Pledge Friendly’ program.”

[18]. S. Kim, M. J. Karlesky, C. G. Myers, and T. Schifeling, “Why Companies Are Becoming B Corporations, ” Harvard Business Review, Jun. 17, 2016.

[19]. Alexa, “Are ‘Climate Pledge Friendly’ Products on Amazon Really Sustainable?, ” Novel Hand.

[20]. L. Li, J. Chen, and S. Raghunathan, “Recommender System Rethink: Implications for an Electronic Marketplace with Competing Manufacturers, ” Information Systems Research, vol. 29, no. 4, pp. 1003–1023, Dec. 2018, doi: 10.1287/isre.2017.0765.

[21]. Z. (Zachary) Zhong, “Platform Search Design: The Roles of Precision and Price, ” Marketing Science, vol. 42, no. 2, pp. 293–313, Mar. 2023, doi: 10.1287/mksc.2022.1370.

[22]. T.-H. Teh and J. Wright, “Intermediation and Steering: Competition in Prices and Commissions, ” Am Econ J Microecon, vol. 14, no. 2, pp. 281–321, May 2022, doi: 10.1257/mic.20190344.

[23]. R. Inderst and M. Ottaviani, “Competition through Commissions and Kickbacks, ” American Economic Review, vol. 102, no. 2, pp. 780–809, Apr. 2012, doi: 10.1257/aer.102.2.780.

[24]. B. Zhou and T. Zou, “Competing for Recommendations: The Strategic Impact of Personalized Product Recommendations in Online Marketplaces, ” Marketing Science, vol. 42, no. 2, pp. 360–376, Mar. 2023, doi: 10.1287/mksc.2022.1388.

[25]. N. Singh and X. Vives, “Price and Quantity Competition in a Differentiated Duopoly, ” RAND Journal of Economics, vol. 15, no. 4, pp. 546–554, 1984, [Online]. Available: https: //EconPapers.repec.org/RePEc: rje: randje: v: 15: y: 1984: i: winter: p: 546-554

[26]. W. A. Kelly, “A Generalized Interpretation of the Herfindahl Index, ” South Econ J, vol. 48, no. 1, p. 50, Jul. 1981, doi: 10.2307/1058595.

[27]. C. Liston-Heyes and A. Pilkington, “Inventive concentration in the production of green technology: a comparative analysis of fuel cell patents, ” Sci Public Policy, vol. 31, no. 1, pp. 15–25, Feb. 2004, doi: 10.3152/147154304781780190.

Cite this article

Jiang,Y. (2025). The Impact of a Unified Green Badge Policy on the Ecommerce Platform. Advances in Economics, Management and Political Sciences,225,1-13.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

About volume

Volume title: Proceedings of ICEMGD 2025 Symposium: Resilient Business Strategies in Global Markets

ISBN: 978-1-80590-385-7(Print) / 978-1-80590-386-4(Online)
Editor: Florian Marcel Nuţă Nuţă, Li Chai
Conference website: https://2025.icemgd.org/CAU.html
Conference date: 20 September 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.225
ISSN: 2754-1169(Print) / 2754-1177(Online)

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