IDEAS home Printed from https://ideas.repec.org/a/oup/erevae/v42y2015i3p419-440..html
   My bibliography  Save this article

The economics of planting rights in wine production

Author

Listed:
  • Koen Deconinck
  • Johan Swinnen

Abstract

The European Union (EU) is the world's largest wine producer, as well as the world's most regulated wine market. In 2007, the EU decided on a major reform of its wine policy. A crucial element was the abolishment of a system of planting rights to limit the planting of vineyards. However, after intense lobbying by opponents of the liberalisation, this decision was reversed in 2013. Despite the importance of planting rights in European (and hence global) wine production, and despite the fierce debates surrounding the reforms, no model exists to study the effects of this policy. We develop the first theoretical model of planting rights, integrating the markets for land, planting rights and wine to analyse efficiency and distributional effects. We use the model to study the effects of differences among EU member states in restrictions on trade in planting rights, the role of government reserves and the impact of imperfect enforcement.

Suggested Citation

  • Koen Deconinck & Johan Swinnen, 2015. "The economics of planting rights in wine production," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(3), pages 419-440.
    • Handle: RePEc:oup:erevae:v:42:y:2015:i:3:p:419-440.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/erae/jbu028
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alston, Julian M., 1981. "A Note on the Effects of Non-Transferable Quotas on Supply Functions," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 49(03), pages 1-9, December.
    2. Alexandre Gohin & Jean-Christophe Bureau, 2006. "Modelling the EU sugar supply to assess sectoral policy reforms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 33(2), pages 223-247, June.
    3. Gallet, Craig A., 2007. "The demand for alcohol: a meta-analysis of elasticities," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 1-15.
    4. Bourgeon, Jean-Marc & Jayet, Pierre-Alain & Picard, Pierre, 1995. "An incentive approach to land set-aside programs," European Economic Review, Elsevier, vol. 39(8), pages 1487-1509, October.
    5. Meloni, Giulia & Swinnen, Johan, 2013. "The Political Economy of European Wine Regulations," Journal of Wine Economics, Cambridge University Press, vol. 8(3), pages 244-284, December.
    6. B. L. Gardner & G. C. Rausser (ed.), 2002. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 2, number 4.
    7. Alston, Julian M. & James, Jennifer S., 2002. "The incidence of agricultural policy," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 33, pages 1689-1749, Elsevier.
    8. James Fogarty, 2010. "The Demand For Beer, Wine And Spirits: A Survey Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 24(3), pages 428-478, July.
    9. Markus Lips & Peter Rieder, 2005. "Abolition of Raw Milk Quota in the European Union: A CGE Analysis at the Member Country Level," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(1), pages 1-17, March.
    10. B. L. Gardner & G. C. Rausser (ed.), 2002. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 2, number 3.
    11. Etienne Montaigne & Alfredo Manuel Coelho & Bernard Delord & Leïla Khefifi, 2012. "Etude sur les impacts socio‐économiques et territoriaux de la libéralisation des droits de plantations viticoles," Post-Print hal-01506158, HAL.
    12. Gisser, Micha, 1993. "Price Support, Acreage Controls, and Efficient Redistribution," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 584-611, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Christian A. Cancino & Jorge J. Román & José L. Gallizo, 2017. "Exploring features and opportunities of rapid-growth wine firms in Chile," Estudios Gerenciales, Universidad Icesi, vol. 33(143), pages 115-123, June.
    2. Julian M. Alston & Davide Gaeta, 2021. "Reflections on the Political Economy of European Wine Appellations," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 7(2), pages 219-258, July.
    3. Rickard, Bradley J. & Gergaud, Olivier & Ho, Shuay-Tsyr & Hu, Wenjing, 2014. "Trade Liberalization In The Presence Of Domestic Regulations: Impacts Of The Proposed Eu-U.S. Free Trade Agreement On Wine Markets," Working Papers 190670, American Association of Wine Economists.
    4. Boysen, Ole & Ferrari, Emanuele & Nechifor, Victor & Tillie, Pascal, 2023. "Earn a living? What the Côte d’Ivoire–Ghana cocoa living income differential might deliver on its promise," Food Policy, Elsevier, vol. 114(C).
    5. Paola Corsinovi & Davide Gaeta, 2017. "European Wine Policies and their consequences on the global wine trade," Economia agro-alimentare, FrancoAngeli Editore, vol. 19(1), pages 59-88.
    6. Castillo-Valero, Juan S. & Sanchez-Garcia, Mercedes & Garcia-Cortijo, Mari Carmen, 2016. "Predicting grower choices in a regulated environment," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 20(1), November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bullock, David S. & Salhofer, Klaus, 2003. "Judging agricultural policies: a survey," Agricultural Economics, Blackwell, vol. 28(3), pages 225-243, May.
    2. Arovuori, Kyösti, 2014. "Effectiveness of the CAP in terms of its objectives," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182911, European Association of Agricultural Economists.
    3. Marten Graubner, 2018. "Lost in space? The effect of direct payments on land rental prices," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 45(2), pages 143-171.
    4. Merel, Pierre R., 2006. "About the Efficiency of Input vs. Output Quotas," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25391, International Association of Agricultural Economists.
    5. Marusca De Castris & Daniele Di Gennaro, 2018. "Does agricultural subsidies foster Italian southern farms? A Spatial Quantile Regression Approach," Papers 1803.05659, arXiv.org.
    6. Giulia Meloni & Kym Anderson & Koen Deconinck & Johan Swinnen, 2019. "Wine Regulations," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(4), pages 620-649, December.
    7. Arovuori, Kyösti, 2017. "Jak reformy WPR przyczyniły się do zmian strukturalnych w rolnictwie?," Village and Agriculture (Wieś i Rolnictwo), Polish Academy of Sciences (IRWiR PAN), Institute of Rural and Agricultural Development, vol. 3(176).
    8. Bradley J. Rickard & Abigail M. Okrent & Julian M. Alston, 2013. "How Have Agricultural Policies Influenced Caloric Consumption In The United States?," Health Economics, John Wiley & Sons, Ltd., vol. 22(3), pages 316-339, March.
    9. Mullen, John D., 2004. "Impact Assessment of ACIAR-funded Projects on Grain-market Reform in China," Impact Assessment Series (IAS) 113252, Australian Centre for International Agricultural Research.
    10. Liesbeth Colen & Johan Swinnen, 2016. "Economic Growth, Globalisation and Beer Consumption," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 186-207, February.
    11. Karel Janda & Zuzana Lajksnerová & Jakub Mikolášek, 2019. "A General Equilibrium Model of Optimal Alcohol Taxation in the Czech Republic," Prague Economic Papers, Prague University of Economics and Business, vol. 2019(5), pages 589-611.
    12. Ryckembusch, David & Frega, Romeo & Silva, Marcio Guilherme & Gentilini, Ugo & Sanogo, Issa & Grede, Nils & Brown, Lynn, 2013. "Enhancing Nutrition: A New Tool for Ex-Ante Comparison of Commodity-based Vouchers and Food Transfers," World Development, Elsevier, vol. 49(C), pages 58-67.
    13. Gregory S. Amacher & Erkki Koskela & Markku Ollikainen, 2004. "Deforestation, Production Intensity and Land Use under Insecure Property Rights," CESifo Working Paper Series 1128, CESifo.
    14. Anderson, Kym, 2020. "Consumer Taxes on Alcohol: An International Comparison over Time," Journal of Wine Economics, Cambridge University Press, vol. 15(1), pages 42-70, February.
    15. Chandana Maitra & Sriram Shankar & D.S. Prasada Rao, 2016. "Income Poor or Calorie Poor? Who should get the Subsidy?," Discussion Papers Series 564, School of Economics, University of Queensland, Australia.
    16. Randy Stringer & Prabhu Pingali, 2004. "Agriculture's Contributions to Economic and Social Development," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 1(1), pages 1-5.
    17. Czyżewski Andrzej & Grzelak Aleksander, 2018. "Application of the input-output model for structural analysis on the example of the agricultural sector in Poland," Management, Sciendo, vol. 22(2), pages 285-298, December.
    18. Huber, Robert & Lehmann, Bernard, 2010. "Economies of Scope in the Agricultural Provision of Ecosystem Services: An Application to a High Cost Production Region," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 59(02), pages 1-15, June.
    19. Didier Tatoutchoup & Octave Keutiben, 2020. "Liberalization of the market for alcohol: Evidence from a Canadian province," Economics Bulletin, AccessEcon, vol. 40(1), pages 782-800.
    20. Wenshou Yan, 2016. "Political Economy of Trade and Storage Policies Coordination, and the Role of Domestic Public Storage in the World Market," School of Economics and Public Policy Working Papers 2016-16, University of Adelaide, School of Economics and Public Policy.

    More about this item

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:erevae:v:42:y:2015:i:3:p:419-440.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.