Competition and coordination in a dual-channel green supply chain with an eco-label policy

•The eco-label policy can improve the supply chain’s economic and environmental performance.•The manufacturer’s tolerance for the green cost can be improved by the integration level of the supply chain.•Before drawing up a contract, the supply chain members must thoroughly examine the eco-label policy.•Increasing consumer green awareness would benefit the supply chain economically and environmentally.•Increasing the green standard and the subsidy can promote the importance of the contract. This research solves a dual-channel green supply chain management problem encountered under an eco-label policy. The government sets a green standard for the manufacturer. The manufacturer can only obtain an eco-label and subsidy from the government if the product satisfies the standard. In this paper, we propose a two-part tariff contract for supply chain members and compare it to other normal conditions. The contract allows supply chain members to make suitable decisions to obtain more profits while greening the supply chain. The present work also reveals the impact of the eco-label policy on the economic and environmental performance of the supply chain. The results can guide governments in making the best use of environmental regulations.