In this article, we analyze the impact of varying exchange rates on French wine exports using a dynamic Armington panel model for the time period from 2000 to 2011. Our results suggest that French wines have become less competitive during the 2000s. This is due to two factors: rising domestic wine prices relative to foreign competitors and the appreciation of the euro against the USD and the GBP. Chinese demand appears to be a key driver of French wine exports. In addition, we find some compositional effects in Bordeaux wine exports. In response to the appreciation of the euro, the share of high-priced wines has increased, suggesting some degree of quality sorting in response to exchange-rate changes. (JEL Classification: F14, F31, Q17)

This paper analyzes the impact of annual weather fluctuations on the total output of wine and on the share of output of different wine-quality categories in Germany, using a set of wine data from all thirteen German wine regions and daily weather data taken from regional weather stations. The empirical analysis suggests that rising average temperatures have a significantly positive impact on the total output of wine as well as on the output shares of wine in higher-quality categories. The number of freezing days appears to be detrimental to overall production; precipitation during the growing season impairs higher-quality wines in particular. (JEL Classifications: Q21, Q13)

This study examines a framework developed by Cardebat, Figuet, and Paroissien in a 2014 Journal of Wine Economics article for identifying the impacts of both objective and subjective quality on wine prices. We recognize how various specifications are observationally equivalent and that the interpretation of model estimates depends crucially on the posited assumption for the relation between price and objective and subjective quality. The proposed framework is applied to Australian premium wines. Results indicate that the price impact of expert personal opinions is similar to the impact of objective quality as estimated via weather, vintage, and producer fixed effects. The relative importance of objective quality compared with subjective quality depends crucially on the ability of expert scores to accurately reflect objective quality. (JEL Classifications: C21, Q11, Q54)

In the context of the important implications of climate change, this paper analyzes the impact of weather on wine quality and prices for Australian premium wines. Motivated by a recognition of consumers’ accessed information sets, the impact of temperature and rainfall on retail wine prices is assessed through their relation with quality ratings from a high-profile wine guide and then on prices. For a broad spectrum of different quality wines from a cross section of wines available in 2014 and a separate analysis of eight wine varieties, the indirect approach to modeling weather effects through wine quality is found to be superior than assuming weather impacts directly on retail prices. The results also demonstrate the importance of regional variations in weather conditions in influencing prices and identify the optimal season growing temperatures for different grape varieties. (JEL Classifications: Q13, Q54)

Climate change is a major challenge in wine production. Temperatures are increasing worldwide, and most regions are exposed to water deficits more frequently. Higher temperatures trigger advanced phenology. This shifts the ripening phase to warmer periods in the summer, which will affect grape composition, in particular with respect to aroma compounds. Increased water stress reduces yields and modifies fruit composition. The frequency of extreme climatic events (hail, flooding) is likely to increase. Depending on the region and the amount of change, this may have positive or negative implications on wine quality. Adaptation strategies are needed to continue to produce high-quality wines and to preserve their typicity according to their origin in a changing climate. The choice of plant material is a valuable resource to implement these strategies. (JEL Classifications: Q13, Q54)