 The effect of South African wine certifications on price premiums and marginal costs: A two-stage hedonic approachBritta Niklas Economic Modelling, 2024, vol. 132, issue C Abstract: This paper analyses whether there are price premiums for certified and black economic empowerment (BEE) South African wines in the domestic market and the major export markets (Germany, United Kingdom, the Netherlands, and Belgium) and estimates what (marginal) costs are related to supplying these certifications. The results suggest price premiums for BEE wines, while for certified wines price premiums only apply in some markets and especially for those certifications that focus on the environment and organic production, but not for those that focus on fair trade or labor. The results for marginal costs suggest that subsidized BEE wines sell lower quantities but gain access to higher price segments, while the opposite holds true for certified wines. Additionally, for certified wines (except Fairtrade), younger and private producers have a comparative cost advantage. Keywords: Revealed preferences; Wine prices; Certified wines; South african wines; Hedonic two-stage approach (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:132:y:2024:i:c:s0264999324000063 DOI: 10.1016/j.econmod.2024.106650 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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