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Does VQA Certification Matter? A Hedonic Analysis

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  • Danielle E. Rabkin
  • Timothy K.M. Beatty

Abstract

The Vintners Quality Alliance (VQA) program was established in British Columbia in 1990 in response to international pressure that opened the BC wine market to increased foreign competition. The VQA program aimed at improving the quality of British Columbia-produced wines by outlining standards and regulations for wine produced 100 percent from BC grown grapes. Wine sales in British Columbia are rapidly increasing, w i t h domestically produced Canadian wines having the largest market share. This research examines consumers' valuation of VQA certification through a hedonic price analysis. Results show that consumers are willing to pay a premium for VQA red and white wines. However, the benefits of VQA certification are asymmetric: certification is less important for high-priced wines than for low-priced wines.

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Bibliographic Info

Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 33 (2007)
Issue (Month): 3 (September)
Pages: 299-314

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Handle: RePEc:cpp:issued:v:33:y:2007:i:3:p:299-314

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Postal: University of Toronto Press Journals Division 5201 Dufferin Street Toronto, Ontario, Canada M3H 5T8
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  8. Joseph Gyourko & Joseph Tracy, 1999. "A look at real housing prices and incomes: some implications for housing affordability and quality," Economic Policy Review, Federal Reserve Bank of New York, issue Sep, pages 63-77.
  9. Peter G. Moffatt & Simon A. Peters, 2004. "Pricing Personal Services: An Empirical Study of Earnings in the UK Prostitution Industry," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(5), pages 675-690, November.
  10. Combris, Pierre & Lecocq, Sebastien & Visser, Michael, 1997. "Estimation for a Hedonic Price Equation for Bordeaux Wine: Does Quality Matter?," Economic Journal, Royal Economic Society, vol. 107(441), pages 390-402, March.
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