LAUSR

Abstract This research investigates the relationship between green management and performance in Italian firms. The analysis compares innovation and productivity of firms with similar features but different environmental activities. Firms are matched on a rich set of covariates extending the Coarsened Exact Matching to survey data. Matched data are analysed with parametric and non-parametric tests and endogenous treatment regression. The analysis shows that the relationship between green management and performance is U-shaped. Green firms are performing no better than firms with no environmental activity, especially in energy intensive sectors. Among green firms, more advanced environmental management is associated with higher performance. Overall, the results suggest that green management has strong sectoral patterns and no linear relationship with performance. Findings suggest that green managers should pursue a comprehensive environmental management system. Sectoral-specific policies to promote environmentally friendly activities are needed when green activities are not paying off.