IDEAS home Printed from https://ideas.repec.org/a/bla/ajarec/v65y2021i4p822-847.html
   My bibliography  Save this article

COVID‐19’s impact on Australian wine markets and regions

Author

Listed:
  • Glyn Wittwer
  • Kym Anderson

Abstract

This paper provides an empirical case study of impacts of COVID‐19 on Australia’s wine sector. Wine exports were subject to disruptions and, like domestic wine sales, were adversely affected not only by temporary declines in consumers’ expected incomes but also by the social distancing measures and self‐isolation that led to closure of restaurants, bars, cafes and clubs plus declines in international travel and tourism. Partly offsetting this has been a boost to off‐premise and direct e‐commerce sales. We first estimate those impacts and their expected partial recovery in 2021 using a new model of global beverage markets. Then, we add results on regional effects, including through domestic wine tourism, using a new economy‐wide model with sub‐national regions. The paper concludes by drawing lessons on how this sector’s resilience to future global shocks could be strengthened.

Suggested Citation

  • Glyn Wittwer & Kym Anderson, 2021. "COVID‐19’s impact on Australian wine markets and regions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(4), pages 822-847, October.
    • Handle: RePEc:bla:ajarec:v:65:y:2021:i:4:p:822-847
    DOI: 10.1111/1467-8489.12447
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-8489.12447
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1467-8489.12447?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kym Anderson, 2019. "Australian Wine Industry Competitiveness: Why so Slow to Emerge?," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 12, pages 283-308, World Scientific Publishing Co. Pte. Ltd..
    2. Kym Anderson & Glyn Wittwer, 2019. "Cumulative Effects of Brexit and Other UK and EU-27 Bilateral Free-Trade Agreements on the World’s Wine Markets," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 7, pages 147-166, World Scientific Publishing Co. Pte. Ltd..
    3. Kym Anderson, 2020. "Asia’S Emergence In Global Beverage Markets: The Rise Of Wine," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(04), pages 755-779, June.
    4. Kym Anderson & Glyn Wittwer, 2019. "Modeling Global Wine Markets to 2018: Exchange Rates, Taste Changes, and China’s Import Growth," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 3, pages 51-90, World Scientific Publishing Co. Pte. Ltd..
    5. Glyn Wittwer, 2020. "Estimating the Regional Economic Impacts of the 2017 to 2019 Drought on NSW and the Rest of Australia," Centre of Policy Studies/IMPACT Centre Working Papers g-297, Victoria University, Centre of Policy Studies/IMPACT Centre.
    6. Kym Anderson & Vicente Pinilla, 2022. "Wine's belated globalization, 1845–2025," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 742-765, June.
    7. 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.
    8. Wittwer, Glyn & Anderson, Kym, 2020. "A Model of Global Beverage Markets," Journal of Wine Economics, Cambridge University Press, vol. 15(3), pages 330-354, August.
    9. Anderson, Kym, 2020. "Asia’s emergence in global beverage markets: The rise of wine," CEPR Discussion Papers 14389, C.E.P.R. Discussion Papers.
    10. Warwick McKibbin & Roshen Fernando, 2020. "Global macroeconomic scenarios of the COVID-19 pandemic," CAMA Working Papers 2020-62, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    11. Garnaut,Ross, 2008. "The Garnaut Climate Change Review," Cambridge Books, Cambridge University Press, number 9780521744447.
    12. Kym Anderson & Glyn Wittwer, 2018. "Cumulative Effects of Brexit and Other UK and EU27 Bilateral FTAs on the World's Wine Markets," Wine Economics Research Centre Working Papers 2018-01, University of Adelaide, Wine Economics Research Centre.
    13. Wittwer, Glyn, 2019. "Estimating the regional economic impacts of the present drought on NSW," 2019 Conference (63rd), February 12-15, 2019, Melbourne, Australia 285089, Australian Agricultural and Resource Economics Society (AARES).
    14. Anderson, Kym & Wittwer, Glyn, 2018. "Cumulative Effects of Brexit and Other UK and EU27 Bilateral FTAs on the World’s Wine Markets," CEPR Discussion Papers 12621, C.E.P.R. Discussion Papers.
    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. Glyn Wittwer, 2022. "Preparing a multi-country, sub-national CGE model: EuroTERM including Ukraine," Centre of Policy Studies/IMPACT Centre Working Papers g-334, Victoria University, Centre of Policy Studies/IMPACT Centre.
    2. Jose Antonio Cava Jimenez & Mª Genoveva Millán Vázquez de la Torre & Mª Genoveva Dancausa Millán, 2022. "Enotourism in Southern Spain: The Montilla-Moriles PDO," IJERPH, MDPI, vol. 19(6), pages 1-21, March.

    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. Kym Anderson & Vicente Pinilla, 2022. "Wine's belated globalization, 1845–2025," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 742-765, June.
    2. Wittwer, Glyn & Anderson, Kym, 2021. "COVID-19 and Global Beverage Markets: Implications for Wine," Journal of Wine Economics, Cambridge University Press, vol. 16(2), pages 117-130, May.
    3. Wittwer, Glyn & Anderson, Kym, 2020. "A Model of Global Beverage Markets," Journal of Wine Economics, Cambridge University Press, vol. 15(3), pages 330-354, August.
    4. Inmaculada Carrasco & Juan Sebastián Castillo-Valero & Marcos Carchano & Carmen Córcoles, 2023. "Recent evolution of wine exports in a turbulence period: a multiregional input–output analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-22, December.
    5. Deborah C. Peterson & Lin Crase, 2021. "Disaster, disruption, recovery and resilience: lessons from and for agricultural and resource‐based industries," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(4), pages 767-775, October.
    6. Kym Anderson & Glyn Wittwer, 2021. "From Global Economy-Wide Modeling to Modeling a Small Product Market: The Case of Wine," World Scientific Book Chapters, in: Peter Dixon & Joseph Francois & Dominique van der Mensbrugghe (ed.), POLICY ANALYSIS AND MODELING OF THE GLOBAL ECONOMY A Festschrift Celebrating Thomas Hertel, chapter 8, pages 249-278, World Scientific Publishing Co. Pte. Ltd..
    7. Anderson, Kym, 2020. "Evolving from a Rum State: Australia’s Alcohol Consumption," CEPR Discussion Papers 14761, C.E.P.R. Discussion Papers.
    8. Kym Anderson, 2020. "Evolving from a rum state: Australia's alcohol consumption," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), pages 724-749, July.
    9. Anderson, Kym, 2020. "Evolving from a rum state: Australia’s alcohol consumption," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), July.
    10. Kym Anderson, 2020. "Asia’S Emergence In Global Beverage Markets: The Rise Of Wine," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 65(04), pages 755-779, June.
    11. Glyn Wittwer, 2020. "The 2019-20 Australian Economic Crisis Induced by Bushfires and COVID-19 from the Perspective of Grape and Wine Sectors," Centre of Policy Studies/IMPACT Centre Working Papers g-299, Victoria University, Centre of Policy Studies/IMPACT Centre.
    12. Kym Anderson & Signe Nelgen, 2021. "Internationalization of winegrape varieties and its implications for terroir-based cultural assets," Wine Economics Research Centre Working Papers 2021-04, University of Adelaide, Wine Economics Research Centre.
    13. Ridley, William & Luckstead, Jeff & Devadoss, Stephen, 2022. "Wine: The punching bag in trade retaliation," Food Policy, Elsevier, vol. 109(C).
    14. Ridley, William & Luckstead, Jeff & Devadoss, Stephen, 2022. "Wine: The punching bag in trade retaliation," Food Policy, Elsevier, vol. 109(C).
    15. Anderson, Kym, 2020. "Asia’s emergence in global beverage markets: The rise of wine," CEPR Discussion Papers 14389, C.E.P.R. Discussion Papers.
    16. Kym Anderson & Signe Nelgen & Ernesto Valenzuela & Glyn Wittwer, 2009. "Economic contributions and characteristics of grapes and wine in AustraliaÂ’s wine regions," Centre for International Economic Studies Working Papers 2009-01, University of Adelaide, Centre for International Economic Studies.
    17. John Foster & Liam Wagner & Phil Wild & Junhua Zhao & Lucas Skoofa & Craig Froome, 2011. "Market and Economic Modelling of the Intelligent Grid: End of Year Report 2009," Energy Economics and Management Group Working Papers 09, School of Economics, University of Queensland, Australia.
    18. Cai, Yiyong & Newth, David & Finnigan, John & Gunasekera, Don, 2015. "A hybrid energy-economy model for global integrated assessment of climate change, carbon mitigation and energy transformation," Applied Energy, Elsevier, vol. 148(C), pages 381-395.
    19. Kaidonis, Mary & Moerman, Lee & Rudkin, Kathy, 2009. "Paradigm, paradox, paralysis: An epistemic process," Accounting forum, Elsevier, vol. 33(4), pages 285-289.
    20. Nigel Martin & John Rice, 2010. "Analysing emission intensive firms as regulatory stakeholders: a role for adaptable business strategy," Business Strategy and the Environment, Wiley Blackwell, vol. 19(1), pages 64-75, January.

    More about this item

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

    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:bla:ajarec:v:65:y:2021:i:4:p:822-847. 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.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.