A study on the effects of financial innovations on green products

With increasing environmental awareness, the concept of green products has come to the fore, and over time, this concept has evolved into tangible products in the innovative finance sector. The first part of the study explores the concept of green products, their differences from traditional products, their types, classifications, and their relationship with renewable energy. The impacts of international regulations such as the EU Green Deal, the Paris Agreement, and environmental labeling systems are evaluated. The contribution of green innovation and environmental RveD investments to sustainability is also examined. The second part analyzes the financial infrastructure of green transformation within the context of green finance and financial innovations. Green loans, bonds, environmentally friendly digital finance instruments, as well as environmental taxation and carbon pricing mechanisms are evaluated. In the application part, the environmentally friendly technology efficiency of 22 EU member states and Turkey is examined using Malmquist Data Envelopment Analysis (DEA) and Total Factor Productivity (TFP) methods. In the first model, environmentally friendly technologies are used as outputs, financial development, GDP, environmental taxes, and energy consumption as inputs, while in the second model, carbon emissions are added as undesirable outputs. The results reveal efficiency differences across countries and the impact of financial development on this efficiency. This study aims to contribute to sustainable economic policies by examining the relationship between green products and the financial system from both theoretical and empirical perspectives.