FEEM working papers "Note di lavoro" series
2011 .012

The Value of Terroir: Hedonic Estimation of Vineyard Sale Prices


Authors: Robin Cross, Andrew J. Plantinga, Robert N. Stavins
Series: Climate Change and Sustainable Development
Editor: Carlo Carraro
Type: Journal
Keywords: Wine, Vineyard, Hedonic Price Analysis
JEL n.: C2, Q11
JEL: Journal of Wine Economics
Pages: Vol. 6, Issue 1, pp 1–14

Abstract

We examine the value of terroir, which refers to the special characteristics of a place that impart unique qualities to the wine produced. We do this by conducting a hedonic analysis of vineyard sales in the Willamette Valley of Oregon to ascertain whether site attributes, such as slope, aspect, elevation, and soil types, or designated appellations are more important determinants of price. We find that prices are strongly determined by sub-AVA appellation designations, but not by specific site attributes. These results indicate that the concept of terroir matters economically, although the reality of terroir – as proxied for by locational  attributes – is not significant.

***

Suggested citation:  Robin Cross, Andrew J. Plantinga and Robert N. Stavins (2011). The Value of Terroir: Hedonic Estimation of Vineyard Sale Prices. Journal of Wine Economics, 6, pp 1-14, http://dx.doi.org/10.1017/S1931436100001036 

Download file
Download PDF file

FEEM Update

Subscribe to stay connected.

Your personal data will be processed by Fondazione Eni Enrico Mattei. – data Controller – with the aim of emailing the FEEM newsletter. The use of Your email address is necessary for the implementation of the newsletter service. You are invited to read the Privacy Policy in order to obtain additional information about the protection of Your rights.

This Website uses technical cookies and cookie analytics, as well as “third party” profiling cookies.
If you close this banner or you decide to continue navigating on this Website, you express consent to the use of cookies. If you need additional information or you wish to express selective choices on the use of cookies, please refer to the   Cookie PolicyI agree