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Original Research Article

Do Sustainability Strategies Affect Technical Efficiency? Evidence from Italian GI Wine Farms: Special Issue "Transforming wine value chains – Adapting to a changing world"

Alberto Ceccacci
University of Bologna
Andrea Mattia Pacifico
University of Bologna
Luca Camanzi
University of Bologna
Giulio Malorgio
University of Bologna

Published 2026-06-19

Keywords

  • Stochastic Frontier Analysis,
  • Sustainability,
  • technical efficiency,
  • wine economics

How to Cite

Ceccacci, A., Pacifico, A. M., Camanzi, L., & Malorgio, G. (2026). Do Sustainability Strategies Affect Technical Efficiency? Evidence from Italian GI Wine Farms: Special Issue "Transforming wine value chains – Adapting to a changing world". Wine Economics and Policy. https://doi.org/10.36253/wep-19801

Abstract

Sustainability has become a central objective of agricultural policies and business strategies as resource constraints and societal expectations increasingly affect production systems. The global wine industry is undergoing a structural transformation in which sustainability is no longer voluntary but increasingly required for market access. In this context, upstream strategies adopted by wine farms, such as agri-environmental measures, certification schemes, and labor-related practices, may influence not only environmental and social outcomes but also their productive performance. In Italy, the world’s leading wine producer by volume, these dynamics are particularly evident among Geographical Indication (GI) producers, for whom sustainability is a strategic lever to preserve the terroir underpinning product value. This study investigates whether sustainability-oriented strategies are associated with differences in technical efficiency among Italian GI winegrape producers. The analysis adopts a one-step Stochastic Frontier Analysis framework in which technical inefficiency is modelled as a function of farm characteristics and sustainability-related determinants, using a balanced panel of 2,044 observations from the Italian Farm Accountancy Data Network for the period 2021–2023. The results reveal significant heterogeneity in technical efficiency. Participation in agri-environmental schemes is associated with higher efficiency, while organic certification, diversification, and on-farm processing are linked to higher inefficiency in the short run. Overall, the findings highlight the presence of short-term trade-offs and potential long-term complementarities between sustainability strategies and efficiency, with implications for agricultural policy and the transition of the Italian GI wine value chain.

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