IDEAS home Printed from https://ideas.repec.org/p/hhs/osloec/2009_006.html
   My bibliography  Save this paper

The Premium for Organic Wines: Estimating a Hedonic Price Equation from the Producer Side

Author

Listed:
  • Alessandro, Corsi

    () (Department of Economics, University of Turin, Italy)

  • Strøm, Steinar

    () (Dept. of Economics, University of Oslo)

Abstract

Organic production techniques are an increasing, though minor so far, part of agriculture, and organic wines are increasingly produced and appreciated. Nevertheless, since the organic technique is more costly, a crucial question is whether organic wines benefit from a price premium. In this paper a hedonic price function has been estimated for Piedmont organic and conventional wines. Unlike the current literature on the determinants of wine prices, we used data on the production side in addition to variables of interest for consumers. One question was whether farm and operator’s characteristics of no interest for consumers affect wine prices. The second question was whether organic wine obtains a price premium relative to conventional wine. Our results show that, along with characteristics that are of interest to consumers, like the appellation and the variety, some farm and producer characteristics that are not directly relevant for consumers do significantly affect wine prices. We also find that, though there is not a premium in the sense of an addition to other price components, given farmers’ and wines’ characteristics, organic wines do command higher prices.

Suggested Citation

  • Alessandro, Corsi & Strøm, Steinar, 2009. "The Premium for Organic Wines: Estimating a Hedonic Price Equation from the Producer Side," Memorandum 06/2009, Oslo University, Department of Economics.
  • Handle: RePEc:hhs:osloec:2009_006
    as

    Download full text from publisher

    File URL: https://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2009/Memo-06-2009.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cacchiarelli, Luca & Carbone, Anna & Esti, Marco & Laureti, Tiziana & Sorrentino, Alessandro, 2015. "Assessing the Value of Quality in the Italian Wine Market," 2015 Conference, August 9-14, 2015, Milan, Italy 211379, International Association of Agricultural Economists.
    2. repec:pje:journl:article12ii is not listed on IDEAS
    3. Cacchiarelli, Luca & Carbone, Anna & Esti, Marco & Laureti, Tiziana & Sorrentino, Alessandro, 2015. "Wine quality and prices: experts vs market," 143rd Joint EAAE/AAEA Seminar, March 25-27, 2015, Naples, Italy 202750, European Association of Agricultural Economists.

    More about this item

    Keywords

    Organic wine; hedonic price; price premium; Piedmont;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:osloec:2009_006. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mari Strønstad Øverås). General contact details of provider: http://edirc.repec.org/data/souiono.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.