WIT Press


Does The Environment Matter On The Wine Market: An Analysis Of The Wine Market In Austria

Price

Free (open access)

Paper DOI

10.2495/ECO130181

Volume

175

Pages

8

Page Range

211 - 218

Published

2013

Size

323 kb

Author(s)

P. Amrusch & F. Wirl

Abstract

The main aim of the paper is the estimation of regional and environmental values capitalized in the wine market. By means of hedonic regression analysis, possible premiums attached to nonmarket characteristics such as geographical designations and regional qualities are deferred from the Austrian wine market prices. Moreover, the relation between land values and wine prices is addressed. In the introductory section the main legal changes in the Austrian wine market are pointed out. Afterwards, the variable selection of perceived price signals on the basis of the assumption of homogeneity of wine consumers’ preferences of regulations underlying the model is performed. Finally, the hedonic regressions display the consumers ‘willingness to pay for various wine characteristics, whereby the relevance of geographical designations and other regional criteria reflected in the land values are investigated. Finally, possible future implications of the results are highlighted. Keywords: hedonic modelling, estimation of non-market value, Austrian wine market, valuation of vineyards, willingness-to-pay for geographical designation.

Keywords

Keywords: hedonic modelling, estimation of non-market value, Austrian wine market, valuation of vineyards, willingness-to-pay for geographical designation.