Environmental transition and firm-provided welfare: empirical insights from Italy

Purpose This paper examines the relationship between firms’ investment in green technologies and different typologies of welfare services (WS) provided by Italian firms. Design/methodology/approach The study is based on unique information obtained from the RIL survey conducted by Istituto nazionale per l'analisi delle politiche pubbliche (Inapp) on a large representative sample of partnerships and limited liability firms for the years 2015, 2018 and 2021. We utilise cross-sectional OLS models for the 2021 sample of 17,013 companies and panel data fixed-effect regressions for a longitudinal, restricted sample of firms in 2018 and 2021 (6,788 companies) as well as in 2015, 2018 and 2021 (4,188 companies). Difference-in-difference techniques have been implemented to address the potential endogeneity of our explanatory variable. Findings We find that increased investment in green technologies boosts the likelihood of offering WS, particularly pension funds. These schemes may be more suitable than others for retaining employees and lengthening their job tenure, thereby promoting the accumulation of experiences related to cleaner production. Originality/value This study is the first to rely on detailed microdata that focuses on the relationship between firms’ investment in green technologies and the adoption of welfare services in a large European economy, such as Italy. It provides empirical support for the hypothesis that corporate social responsibility may encompass both environmental and social dimensions.