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The economic impact of Napa valley on other California grape districts

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  • Chong-Uk Kim
  • Gieyoung Lim

Abstract

This paper investigates the economic impacts on other grape-growing regions in California relative to Napa Valley. To test empirically, we examine the influence of the production levels and prices of each grape variety in Napa, prioritized by their prevalence in Napa, on the production and price of the same varieties in other regions. Our empirical results suggest that first, price changes of Cabernet Sauvignon in Napa affect prices across all other major regions. Second, changes in Sonoma’s Pinot Noir prices are found to influence fluctuations in Napa’s prices. Last, the lesser impact of production changes on other regions compared to price dynamics may be attributed to environmental factors.

Suggested Citation

  • Chong-Uk Kim & Gieyoung Lim, 2026. "The economic impact of Napa valley on other California grape districts," Applied Economics, Taylor & Francis Journals, vol. 58(17), pages 3247-3263, April.
    • Handle: RePEc:taf:applec:v:58:y:2026:i:17:p:3247-3263
    DOI: 10.1080/00036846.2025.2484031
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