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. Results show that green products (β = 0.380, p < 0.001) and green packaging (β = 0.399, p < 0.001) significantly influence purchase decisions (R² = 0.382). Both variables also directly affect the green economy (β = 0.231; β = 0.234), with purchase decisions acting as a partial mediator (β = 0.133; β = 0.139). The model demonstrates substantial explanatory power (R² = 0.417; GoF = 0.492). 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.