Measuring the Economic Effect of Global Warming on Viticulture Using Auction, Retail, and Wholesale Prices

Orley Ashenfelter and Karl Storchmann

No 16037, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: 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 farmer revenue of about 30 percent.

JEL-codes: D44 L66 Q1 Q5 Q51 (search for similar items in EconPapers)
Date: 2010-05
Note: EEE IO CH
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Published as Orley Ashenfelter & Karl Storchmann, 2010. "Measuring the Economic Effect of Global Warming on Viticulture Using Auction, Retail, and Wholesale Prices," Review of Industrial Organization, Springer, vol. 37(1), pages 51-64, August.

Downloads: (external link)
http://www.nber.org/papers/w16037.pdf (application/pdf)

Related works:
Journal Article: Measuring the Economic Effect of Global Warming on Viticulture Using Auction, Retail, and Wholesale Prices (2010)
Working Paper: MEASURING THE ECONOMIC EFFECT OF GLOBAL WARMING ON VITICULTURE USING AUCTION, RETAIL AND WHOLESALE PRICES (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:16037

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w16037

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().