Purpose Wood pellet heating systems are considered as an essential component of European plans to reduce greenhouse gas (GHG) emissions. The goal of this analysis was to estimate and compare the environmental impacts and the costs of the production of packed wood pellets. Two pellet production systems, using roundwood logs (case 1) and mainly sawdust (case 2), have been analysed in 2015 in Basilicata region (Southern Italy). Methods A life cycle assessment (LCA) analysis was applied to calculate the environmental impact indicators of each system, whilst a life cycle cost (LCC) analysis was implemented to evaluate the pellets’ cost production. Hence, the functional unit chosen was 1 t of produced pellets. The system boundaries c...