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Too Much of a Good Thing? Causes and Consequences of Increases in Sugar Content of California Wine Grapes

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  • Alston, Julian M.
  • Fuller, Kate B.
  • Lapsley, James T.
  • Soleas, George

Abstract

The sugar content of California wine grapes has increased significantly over the past 10–20 years, and this implies a corresponding increase in the alcohol content of wine made with those grapes. In this paper we develop a simple model of winegrape production and quality, including sugar content and other characteristics as choice variables along with yield. Using this model we derive hypotheses about alternative theoretical explanations for the phenomenon of rising sugar content of grapes, including effects of changes in climate and producer responses to changes in consumer demand. We analyze detailed data on changes in the sugar content of California wine grapes at crush to obtain insight into the relative importance of the different influences. We buttress this analysis of sugar content of wine grapes with data on the alcohol content of wine.

Suggested Citation

  • Alston, Julian M. & Fuller, Kate B. & Lapsley, James T. & Soleas, George, 2011. "Too Much of a Good Thing? Causes and Consequences of Increases in Sugar Content of California Wine Grapes," Working Papers 162514, Robert Mondavi Institute Center for Wine Economics.
    • Handle: RePEc:ags:mondwp:162514
    DOI: 10.22004/ag.econ.162514
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    References listed on IDEAS

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    1. Lecocq, Sébastien & Visser, Michael, 2006. "Spatial Variations in Weather Conditions and Wine Prices in Bordeaux," Journal of Wine Economics, Cambridge University Press, vol. 1(2), pages 114-124, October.
    2. R.P. Byron & O. Ashenfelter, 1995. "Predicting the Quality of an Unborn Grange," The Economic Record, The Economic Society of Australia, vol. 71(1), pages 40-53, March.
    3. Byron, R P & Ashenfelter, Orley, 1995. "Predicting the Quality of an Unborn Grange," The Economic Record, The Economic Society of Australia, vol. 71(212), pages 40-53, March.
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    Cited by:

    1. Fares, M'hand & Orozco, Luis, 2014. "Tournament Mechanism in Wine-Grape Contracts: Evidence from a French Wine Cooperative," Journal of Wine Economics, Cambridge University Press, vol. 9(3), pages 320-345, December.
    2. Omamuyovwi Gbejewoh & Saskia Keesstra & Erna Blancquaert, 2021. "The 3Ps (Profit, Planet, and People) of Sustainability amidst Climate Change: A South African Grape and Wine Perspective," Sustainability, MDPI, vol. 13(5), pages 1-23, March.
    3. Ashenfelter, Orley & Storchmann, Karl, 2014. "Wine and Climate Change," Working Papers 164854, American Association of Wine Economists.
    4. Carew, Richard C. & Florkowski, Wojciech J. & Meng, Ting, 2016. "Segmenting Wine Market: California Red and White Wine Retail Prices in British Columbia," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235253, Agricultural and Applied Economics Association.
    5. De Salvo, Maria & Begalli, Diego & Capitello, Roberta & Signorello, Giovanni, 2015. "A spatial micro-econometric approach to estimating climate change impacts on wine firm performance: A case study from Moldavia region, Romania," Agricultural Systems, Elsevier, vol. 141(C), pages 48-57.

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    More about this item

    Keywords

    Agribusiness;

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q19 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Other
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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