To enhance the health and stability of livestock product supply chains, it is imperative to augment product sustainability and satisfy food safety requirements through collaborative green innovation. Digital traceability technology amalgamates information and resources from stakeholders in the supply chain, facilitating knowledge sharing and product tracking throughout the entire process to purify the supply chain environment. Augmenting communication and trust among supply chains paves the way for green innovation, thereby yielding value-added benefits. Consequently, this paper formulates a simulation model for manufacturers, retailers, and consumers—three pivotal stakeholders in the traceability process of livestock products—from a value co-creation standpoint. It also incorporates a contract penalty mechanism to probe the collaborative green innovation process among various entities involved in the livestock product supply chain. System simulation is employed to emulate the evolution path of collaborative green innovation in the livestock product supply chain under the value co-creation perspective. Subsequently, a stepwise penalty mechanism, green incentive mechanism, and fair distribution mechanism are proposed for stakeholders to actualize collaborative green innovation and value creation. The findings reveal that: (1) the collaborative green behavior between suppliers, retailers, and consumers is influenced by factors such as value co-creation excess returns, innovative technology costs like traceability, cost sharing among stakeholders, and a certain threshold of government penalties. (2) A balanced distribution of excess returns and cost-sharing among stakeholders fosters the evolution of a green collaborative state in the supply chain, thereby achieving sustainable development with value chain enhancement and ecological optimization.

To examine how digitally empowered rural e-commerce affects the market-oriented allocation of urban–rural factors at the county level and the underlying mechanism, this study treats the National E-commerce into Rural Counties Demonstration Program as a quasi-natural experiment. Using a panel of 1898 Chinese counties from 2000 to 2022, we conduct multi-period DID with staggered adoption and mediation analyses. The results show that rural e-commerce significantly raises the marketization level of factor allocation; the effect grows stronger over time and is most pronounced during the rapid-expansion phase, in agriculture-oriented e-commerce counties, in poverty-stricken counties, and in the Central and Western regions. The impact operates mainly through three channels: enlarging market size, upgrading industrial structure, and deepening digital financial usage. Notably, the digital finance channel exhibits a suppression effect, suggesting a complex role of financial digitalization in the early stages of rural development. To further ensure the robustness of our findings, we also conduct rigorous checks using the CSDID method and alternative proxy variables, consistently reaffirming the policy’s significant positive impact. These findings offer actionable evidence for deepening county-level factor-market reforms and advancing common prosperity, leading to policy recommendations on strengthening county digital infrastructure, tailoring e-commerce support systems, and improving the institutional environment for factor mobility.