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What is the Value of Terroir? Historical Evidence from Champagne and Bordeaux

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  • Swinnen, J.
  • Meloni, G.
  • Haeck, C.

Abstract

The concept of geographical indications or terroir refers to the special characteristics of a place that imparts unique qualities to the product (wine) produced. This paper analyses how regulations that formally establish a link between product quality and production location ( terroir ) affect the price of the product. More specifically, we study how the introduction of wine geographical indications or Appellations of Origin in early twentieth century France influenced the price of specific wines (Champagne and Bordeaux) in the years and decades following their introduction. We find very significant effects on prices of the initial Champagne zone, but no impact on other types of wines. Acknowledgement : This research was funded by the KU Leuven (Methusalem Funding) and the Cournot Center, Paris. The paper benefited from helpful conversations with and suggestions from Kym Anderson, Erik Buyst, Koen Deconinck, Eline Poelmans and Karl Storchmann. We also thank Antonio Meloni for excellent assistance throughout the construction of the dataset.

Suggested Citation

  • Swinnen, J. & Meloni, G. & Haeck, C., 2018. "What is the Value of Terroir? Historical Evidence from Champagne and Bordeaux," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277221, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae18:277221
    DOI: 10.22004/ag.econ.277221
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    Cited by:

    1. Meloni, Giulia & Swinnen, Johan, 2018. "Trade and terroir. The political economy of the world’s first geographical indications," Food Policy, Elsevier, vol. 81(C), pages 1-20.

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