Abstract:Driven by the pressures of resource shortages and environmental pollution, and the development of digital economy and internet technology, “I nternet+” recycling such as “Ai Huishou” and “Dabashou” came into being, and the participation mechanism and influence mechanism of such platforms have gradually become a hot academic topic. In addition, although environmental governance costs increase the operating costs of enterprises, they can potentially promote consumers’ demand for new products and improve the recycling rate of used products. Therefore, it is necessary to study enterprises’ “Internet+” recycling decisions and to explore the impact of environmental governance costs on enterprises’ profits. Aiming at this, this paper constructs a closed-loop supply chain consisting of a supplier, a manufacturer, and a third-party recycler (3PR). Among them, the manufacturer is the leader and can choose whether to promote or not promote the “Internet+” recycling platform. On this basis, it studies the behind the manufacturer promoting the “Internet+” recycling model, the decisions regarding 3PR’s recycling pricing and its level of recycling effort, as well as the impact mechanism of environmental governance costs on the motivation and decisions. The results indicate that: once environmental governance costs arise and the unit environmental governance cost is relatively low, the 3PR’s recycling effort can reduce the recycling price of used products and increase the both its recycling quantity and its profit. When environmental governance costs are taken into account, the 3PR’s recycling effort and the manufacturer’s promotion of the “Internet+” recycling platform lead to the highest demand and manufacturer profits, which increase with the improvement of the disassembly rate. The 3PR’s preference aligns with the manufacturer’s only when the disassembly rate exceeds a certain threshold, while the supplier’s strategic preferences are opposite to those of the 3PR. Based on above conclusions, development suggestions from different perspectives of home appliance platform merchants, upstream home appliance manufacturers, the government, and the 3PR are provided.