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Accounting for Growth in Australia’s Grape and Wine Industries, 1986 to 2003

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  • Wittwer, Glyn
  • Anderson, Kym

Abstract

This paper seeks first to quantify the relative importance of the different factors contributing to growth in Australia’s wine industry over the ten years to 1996. This growth accounting exercise uses an economy-wide model for Australia that separately distinguishes nonpremium from premium red and premium white grapes and wine. Around half the premium wine output growth in that period is attributed to export demand growth. Other important contributors to growth include upgrading of domestic preferences, increases in national income, input-saving technological changes and (negatively) increases in domestic consumer taxes on wine. Looking forward, recent and intended vine plantings ensure wine output in 2003 will be about twice that of the mid-1990s. Our model is used to examine how that vineyard expansion might affect the market, especially grape and wine prices and wine exports early next century.

Suggested Citation

  • Wittwer, Glyn & Anderson, Kym, 1999. "Accounting for Growth in Australia’s Grape and Wine Industries, 1986 to 2003," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 125043, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare99:125043
    DOI: 10.22004/ag.econ.125043
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    References listed on IDEAS

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    1. Meagher, G.A. & Parmenter, B.R. & Rimmer, R.J. & Clements, Kenneth W., 1985. "ORANI-WINE: Tax Issues and the Australian Wine Industry," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 53(02), pages 1-16, August.
    2. Kenneth W. Clements & Saroja Selvanathan, 1991. "The Economic Determinants Of Alcohol Consumption," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 35(2), pages 209-231, August.
    3. Peter B. Dixon & Maureen T. Rimmer, 1998. "Forecasting and Policy Analysis with a Dynamic CGE Model of Australia," Centre of Policy Studies/IMPACT Centre Working Papers op-90, Victoria University, Centre of Policy Studies/IMPACT Centre.
    4. Berger, Nicholas & Anderson, Kym, 1999. "Consumer And Import Taxes In The World Wine Market: Australia In International Perspective," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123770, Australian Agricultural and Resource Economics Society.
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    Cited by:

    1. Esmedekh Lkhanaajav, 2016. "CoPS-style CGE modelling and analysis," Centre of Policy Studies/IMPACT Centre Working Papers g-264, Victoria University, Centre of Policy Studies/IMPACT Centre.

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