Abstract

Green packaging has emerged as a viable strategy to promote environmental responsibility and improve quality of life. This study investigates the effects of Green Products and Green Packaging on purchase decisions and their direct and mediated impacts on the Green Economy. Data were collected through questionnaires, observations, and interviews involving micro small medium enterprises in East Java’s tourism sector and local consumers. Structural Equation Modeling was employed for analysis. The results show that environmentally friendly products and environmentally friendly packaging significantly increase consumer purchase decisions, which subsequently strengthen green economic outcomes. Both variables also demonstrate positive direct effects on green economic development, while purchase decisions function as a partial mediator. The model indicates strong explanatory power and supports the view that sustainable product attributes shape consumer behavior. These findings highlight the importance of sustainable consumer behavior and offer strategic insights for micro small medium enterprises to strengthen eco-branding and accelerate green economic transitions.