Evaluating the Economic and Environmental Efficiency of Ports: Evidence From Italy

This paper aims to evaluate the environmental management systems of ports by employing a multistep strategy based on official data for 24 Italian ports in 2016. In the first step, two original composite indicators are proposed to evaluate i) environmental quality related to greenhouse gas emissions due to port activity (i.e., the undesirable output), and ii) the efforts of port authorities to pursue a pro-environmental path. In the second step, port relative efficiency is evaluated by means of the DEA method with the main objective of investigating the persistence of economic efficiency when it is adjusted for environmental costs and pro-environmental commitments. The findings of this study suggest that to avoid partial judgements, the use of a comprehensive framework is pivotal in jointly assessing ports’ environmental and economic performance. The process is optimised when economic performance, the minimisation of the undesirable output and the adoption of green port policies have an appropriate balance. An interesting result for managers and policy makers is that efficiency converges towards the optimal target when ports feature a high pro-environmental attitude by implementing proactive green policies.