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How much government assistance do European wine producers receive?

Author

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  • Kym Anderson

    (Wine Economics Research Centre, School of Economics, University of Adelaide, Australia, and Arndt-Corden Dept of Economics, Australian National University, Canberra ACT 2601, Australia)

  • Hans G. Jensen

    (University of Copenhagen, Denmark)

Abstract

The European Union's long-standing financial support for its wine industry has been non-trivial but very difficult to estimate. The OECD's generic Producer Support Estimate (PSE) methodology has been able to capture some of the supports, but it excludes such measures as subsidized distillation of low-quality wine, grants to promote wine generically, protection via import tariffs, and grubbingup premiums. Nor does the OECD disaggregate EU supports to individual member countries. This paper provides a new set of more-complete estimates of support to EU wine producers. It also reveals how unevenly those supports are spread across EU member countries. The new estimates suggest that during 2007-12, annual assistance amounted to around 700 Euros per hectare of vines or 0.15 Euros per litre of wine produced in the EU as measured at the winery gate. That is equivalent to a nominal rate of direct plus indirect producer assistance of around 20 percent.

Suggested Citation

  • Kym Anderson & Hans G. Jensen, 2016. "How much government assistance do European wine producers receive?," Wine Economics Research Centre Working Papers 2016-02, University of Adelaide, Wine Economics Research Centre.
    • Handle: RePEc:adl:winewp:2016-02
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    File URL: https://media.adelaide.edu.au/economics/papers/winedoc/winewp2016-02.pdf
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    References listed on IDEAS

    as
    1. Davide Gaeta & Paola Corsinovi, 2014. "Economics, Governance, and Politics in the Wine Market," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-39532-0.
    2. 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.
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    Cited by:

    1. Kym Anderson & Giulia Meloni & Johan Swinnen, 2019. "Global Alcohol Markets: Evolving Consumption Patterns, Regulations, and Industrial Organizations," World Scientific Book Chapters, in: Kym Anderson (ed.), The International Economics of Wine, chapter 26, pages 671-712, World Scientific Publishing Co. Pte. Ltd..
    2. Eugenio Pomarici & Roberta Sardone, 2020. "EU wine policy in the framework of the CAP: post-2020 challenges," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 8(1), pages 1-40, December.
    3. repec:lic:licosd:40118 is not listed on IDEAS
    4. 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.
    5. 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.
    6. Pedro Lains, 2017. "Portugal’s wine globalization waves, 1750-2015," Working Papers 0113, European Historical Economics Society (EHES).

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    More about this item

    Keywords

    Producer subsidies; government assistance; Common Market Organization for Wine;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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