 Organic price premium or penalty? A comparative market analysis of organic wines from TuscanyLane A. Abraben, Kelly A. Grogan and Zhifeng Gao Food Policy, 2017, vol. 69, issue C, 154-165 Abstract: Previous literature suggests that the price of wine is a function of its intrinsic and extrinsic attributes. Studies have examined the price of wines from various wine producing regions using the hedonic price model to determine the correlation between wine attributes and price. However few studies have examined the relationship between organic production or certification and price. This study uses a hedonic pricing model to examine the price premiums associated with organic production and organic certification for Tuscan red wines produced between 2000 and 2008 in both the Italian and American wine markets. Controlling for a variety of wine attributes, the analysis finds that wines produced with organic practices, but not certified as organic and wines certified, but not labeled as organic receive a higher price compared to conventional wine, for wines with low quality ratings. However, as the wine’s quality rating increases, the positive effects of organic practices and certification on price decrease, and for wine with higher quality ratings, organic practices and certification is associated with lower prices relative to otherwise comparable conventional wines. Keywords: Biodynamic wine; Eco-labels; Hedonic analysis; Organic wine (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:jfpoli:v:69:y:2017:i:c:p:154-165 DOI: 10.1016/j.foodpol.2017.04.005 Access Statistics for this article Food Policy is currently edited by J. Kydd More articles in Food Policy from Elsevier |
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