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Editor's Choice The Economics of Wine, Weather, and Climate Change

Author

Listed:
  • Orley Ashenfelter
  • Karl Storchmann
Abstract
In this article, we provide an overview of the extensive literature on the impact of weather and climate on grapes and wine, with the goal of identifying how climate change is likely to affect their production. We first discuss the physical impact of weather on vine phenology (i.e., the timing of biological events such as bud break or flowering), berry composition, and yields. Then we examine the economic literature that measures the effects of temperature on wine quality, prices, costs, and profits and, based on this review, infer how climate change will affect these variables. We also describe what has been learned thus far about possible adaptation strategies for grape growers that would allow them to mitigate the economic effects of climate change. We conclude that climate change is likely to produce both winners and losers, with the winners being those located closer to the North and South Poles. There are also likely to be some substantial short-run costs as growers adapt to climate change. Nevertheless, wine making has survived through thousands of years of recorded history, a history that has included significant climate changes. (JEL: Q13, Q18, Q54)

Suggested Citation

  • Orley Ashenfelter & Karl Storchmann, 2016. "Editor's Choice The Economics of Wine, Weather, and Climate Change," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 10(1), pages 25-46.
    • Handle: RePEc:oup:renvpo:v:10:y:2016:i:1:p:25-46.
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    File URL: http://hdl.handle.net/10.1093/reep/rev018
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    References listed on IDEAS

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    1. Jones, Gregory V. & Storchmann, Karl-Heinz, 2001. "Wine market prices and investment under uncertainty: an econometric model for Bordeaux Crus Classes," Agricultural Economics, Blackwell, vol. 26(2), pages 115-133, November.
    2. Ashenfelter, Orley, 2010. "Predicting the Quality and Prices of Bordeaux Wine," Journal of Wine Economics, Cambridge University Press, vol. 5(1), pages 40-52, April.
    3. Mendelsohn, Robert & Nordhaus, William D & Shaw, Daigee, 1994. "The Impact of Global Warming on Agriculture: A Ricardian Analysis," American Economic Review, American Economic Association, vol. 84(4), pages 753-771, September.
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    Cited by:

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    3. Graveline, Nina & Grémont, Marine, 2021. "The role of perceptions, goals and characteristics of wine growers on irrigation adoption in the context of climate change," Agricultural Water Management, Elsevier, vol. 250(C).
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    More about this item

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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