Year: 2013
Type: article
Abstract: Organic wines are increasingly produced and appreciated. Because organic production is more costly, a crucial question is whether they benefit from a price premium. We estimate hedonic price functions for Piedmont organic and conventional wines. We use data on the production side in addition to variables of interest to consumers. Our results show that, along with characteristics of interest to consumers, some farm and producer characteristics not directly relevant for consumers do significantly affect wine prices. We find that organic wine tends to obtain higher prices than conventional wine. The price premium is not simply an addition to other price components; organic quality modifies the impact of the other variables on price. (JEL Classification: C21, D49, L11, Q12)
Source: Journal of Wine Economics
DOI: 10.1017/jwe.2012.22
Authors: Alessandro Corsi, Steinar Strøm
Institutions: University of Turin, University of Oslo
Language: English
Topic: Wine Industry and Tourism
Domain: Social Sciences
SDG: Zero hunger
Open Access status: green
OpenAlex ID: W2146016541