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The Effect of Weather on Wine Quality and Prices: An Australian Spatial Analysis


  • Oczkowski, Edward


In the context of the important implications of climate change, this paper analyzes the impact of weather on wine quality and prices for Australian premium wines. Motivated by a recognition of consumers’ accessed information sets, the impact of temperature and rainfall on retail wine prices is assessed through their relation with quality ratings from a high-profile wine guide and then on prices. For a broad spectrum of different quality wines from a cross section of wines available in 2014 and a separate analysis of eight wine varieties, the indirect approach to modeling weather effects through wine quality is found to be superior than assuming weather impacts directly on retail prices. The results also demonstrate the importance of regional variations in weather conditions in influencing prices and identify the optimal season growing temperatures for different grape varieties. (JEL Classifications: Q13, Q54)

Suggested Citation

  • Oczkowski, Edward, 2016. "The Effect of Weather on Wine Quality and Prices: An Australian Spatial Analysis," Journal of Wine Economics, Cambridge University Press, vol. 11(1), pages 48-65, May.
  • Handle: RePEc:cup:jwecon:v:11:y:2016:i:01:p:48-65_00

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    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming


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