This study explores the impact of cap-and-trade regulations on the performance of dual-channel green supply chains in the presence of disruptions. It examines the interplay between pricing and greening strategies under cap-and-trade conditions and varying market demand disruptions. The model employs a Stackelberg game framework involving an eco-friendly product manufacturer and a retailer, applicable to centralized and decentralized systems.

Results show that a dynamic cap-and-trade system can provide the needed flexibility to adjust emission allowances in real time, and dynamic regulatory frameworks should be supported to balance emission management with supply chain profitability.