Environmental risks and efficiency performances: The vulnerability of Italian forestry firms

This study adopts a nonparametric approach to assess the efficiency performances in the forestry firms and then stratifies them according to an environmental risk metric, revealing the existing nexus between economic profitability, environmental vulnerability and risks. Data cover the period 2013–2015 and refer to 69 Italian firms which carry out forestry and use forest areas. Results highlight that the input‐ and output‐oriented efficiency performances in Italy are, on average, higher for forestry firms belonging to the medium and high environmental risk classes. Nevertheless, forestry firms exposed to low environmental risk show greater improvement towards efficiency over time, demonstrating that the adoption of responsible firm strategy can lead to concrete operative results, both economically and environmentally, even in a short‐term perspective. As a scientific contribution, both methodological and empirical, the study highlights managerial and policy implications in terms of environmental risk management strategy for the Italian forestry firms and devoted regions.