Effects of Eco-Innovation on Economic and Environmental Performance: Evidence from Turkey's Manufacturing Companies

Melek Yurdakul, Halim Kazan
2020 Sustainability  
The concept of eco-innovation has begun to be considered as a solution to preventing environmental damage, especially since the 1990s. Eco-innovation is expected to reduce amounts of waste, air pollution, and material resource usage. However, the effect of eco-innovation on environmental and financial performance has received limited attention. This paper seeks to fill this gap by studying the effect of eco-innovation on environmental and financial performance. In order to do so, data were
more » ... so, data were obtained by collecting surveys completed by 219 manufacturing companies in Turkey. By using structural equation modeling, we found that eco-innovation has a direct effect on pollution prevention, resource saving and recycling; furthermore, it has an indirect positive effect on cost reduction and thus on economic performance. The findings suggest that decision-makers should adopt eco-innovation due to its cost advantage and pollution prevention potential.
doi:10.3390/su12083167 fatcat:yzcsshynmvgdjnuv2zpupnxobe