Abstract: In this paper, we develop a framework for the modeling and analysis of supply chain networks with electronic commerce in which the decision-makers are faced with environmental criteria. Specifically, we consider manufacturers who are involved in the production of a homogeneous product and can sell and have delivered the product not only to retailers but also directly to consumers. In addition, the manufacturers can transact with the retailers electronically. We assume that both the manufacturers and the retailers seek to maximize their profits, and are also faced with environmental criteria, which are weighted accordingly. The consumers, in turn, take both the prices charged by the retailers and the manufacturers, along with the associated transaction costs, as well as the emissions generated, in making their consumption decisions. We derive the equilibrium conditions and establish the finite-dimensional variational inequality formulation. We then utilize variational inequality theory to obtain qualitative properties of the equilibrium pattern. In addition, we propose a continuous time adjustment process for the study of the disequilibrium dynamics and establish that the set of stationary points of the resulting projected dynamical system coincides with the set of solutions of the variational inequality problem. Finally, we apply an algorithm for the determination of equilibrium prices and product shipments as well as the emissions generated in several supply chain examples. This paper captures multicriteria decision-making as regards the environment in the context of supply chains with electronic commerce. Key words: supply chains, environment, multicriteria decision-making, network equilibrium, variational inequalities.