How much government assistance do European wine producers receive?

Kym Anderson and Hans Jensen ()

No 2016-02, Wine Economics Research Centre Working Papers from University of Adelaide, Wine Economics Research Centre

Abstract: The European Union's long-standing financial support for its wine industry has been non-trivial but very difficult to estimate. The OECD's generic Producer Support Estimate (PSE) methodology has been able to capture some of the supports, but it excludes such measures as subsidized distillation of low-quality wine, grants to promote wine generically, protection via import tariffs, and grubbingup premiums. Nor does the OECD disaggregate EU supports to individual member countries. This paper provides a new set of more-complete estimates of support to EU wine producers. It also reveals how unevenly those supports are spread across EU member countries. The new estimates suggest that during 2007-12, annual assistance amounted to around 700 Euros per hectare of vines or 0.15 Euros per litre of wine produced in the EU as measured at the winery gate. That is equivalent to a nominal rate of direct plus indirect producer assistance of around 20 percent.

Keywords: Producer subsidies; government assistance; Common Market Organization for Wine (search for similar items in EconPapers)
JEL-codes: F14 H25 L66 Q18 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2016-02
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Citations: View citations in EconPapers (9)

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Related works:
Chapter: How Much Government Assistance Do European Wine Producers Receive? (2019)
Journal Article: How Much Government Assistance Do European Wine Producers Receive?* (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:adl:winewp:2016-02

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