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Predicting the quality and prices of Bordeaux wines AgEcon
Ashenfelter, Orley.
Bordeaux wines have been made in much the same way for centuries. This article shows that the variability in the quality and prices of Bordeaux vintages is predicted by the weather that created the grapes. The price equation provides a measure of the real rate of return to holding wines (about 2–3% per annum) and implies far greater variability in the early or ‘en primeur’ wine prices than is observed. The analysis provides a useful basis for assessing market inefficiency, the effect of climate change on the wine industry and the role of expert opinion in determining wine prices.
Tipo: Working or Discussion Paper Palavras-chave: Wine quality; Wine prices; Weather; Bordeaux wine; Wine auctions; Demand and Price Analysis; Environmental Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/37297
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MEASURING THE ECONOMIC EFFECT OF GLOBAL WARMING ON VITICULTURE USING AUCTION, RETAIL AND WHOLESALE PRICES AgEcon
Ashenfelter, Orley; Storchmann, Karl.
In this paper we measure the effect of year to year changes in the weather on wine prices and winery revenue in the Mosel Valley in Germany in order to determine the effect that climate change is likely to have on the income of wine growers. A novel aspect of our analysis is that we compare the estimates based on auction, retail, and wholesale prices. Although auction prices are based on actual transactions, they provide a thick market only for high quality, expensive wines and may overestimate climate’s effect on farmer revenues. Wholesale prices, on the other hand, do provide broad coverage of all wines sold and probably come closest to representing the revenues of farmers. Overall, we estimate a 1°C increase in temperature would yield an increase in...
Tipo: Working or Discussion Paper Palavras-chave: Wine; Global warming; Auction prices; Retail prices; Wholesale prices; Demand and Price Analysis; Environmental Economics and Policy.
Ano: 2010 URL: http://purl.umn.edu/90482
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