External　factors,　such　as　the　increasing　environmental　awareness　among　consumers　and　introduction　of　environmental　regulations　by　governments,　have　stimulated　manufacturers　to　produce　new　green　products.　Cost　factors,　on　the　other　hand,　encourage　the　continuation　of　older　generation　products　and　hinder　the　launch　of　new　green　products.　To　study　this　dilemma,　we　consider　a　single　manufacturer　with　the　ability　of　cost　learning　from　the　production　of　an　older　generation　product,　and　it　intends　to　launch　a　new　green　product.　We　first　derive　the　optimal　pricing　and　production　strategies　of　the　manufacturer　based　on　accumulated　cost　learning　using　dynamic　programming　techniques.　Then,　we　identify　the　threshold　conditions　for　producing　the　new　green　product　and　the　Pareto　area　that　can　increase　both　the　profit　of　the　manufacturer　and　surplus　of　consumers.　For　comparison　purposes,　we　also　study　the　impact　of　external　regulations　such　as　environmental　taxes　on　the　introduction　of　a　new　green　product　–　with　results　suggesting　that　the　implementation　of　environmental　taxes　promotes　the　accessibility　of　green　products　and　reduces　the　Pareto　area　of　profit　and　consumer　surplus.　We　also　find　that,　under　the　influence　of　cost　learning,　the　introduction　of　new　greener　products　and　the　implementation　of　environmental　taxes　serve　to　reduce　the　total　environmental　damage　done　by　the　manufacturer.　Results　of　our　models　should　provide　instructive　managerial　insights　for　the　introduction　of　new　greener　products.　©　2020　Elsevier　Inc.