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Climate Change and Wine: A Review of the Economic Implications*

Published online by Cambridge University Press:  14 June 2016

Orley Ashenfelter
Affiliation:
Department of Economics, Princeton University, Princeton, NJ 08544-2098; e-mail: c6789@princeton.edu.
Karl Storchmann
Affiliation:
Department of Economics, New York University, 19 W. 4th Street, New York, NY 10012, and KEDGE Business School, Bordeaux; e-mail: karl.storchmann@nyu.edu.
Corresponding

Abstract

In this article, we provide an overview of the extensive literature on the impact of weather and climate on grapes and wine with the goal of describing how climate change is likely to affect their production. We start by discussing the physical impact of weather on vine phenology, berry composition, and yields and then survey the economic literature measuring the effects of temperature on wine quality, prices, costs, and profits and how climate change will affect these. We also describe what has been learned so far about possible adaptation strategies for grape growers that would allow them to mitigate the economic effects of climate change. We conclude that climate change is likely to produce winners and losers, with the winners being those closer to the North and South Poles. There are also likely to be some substantial short-run costs as growers adapt to climate change. Nevertheless, wine making has survived through thousands of years of recorded history, a history that includes large climate changes. (JEL Classifications: Q54, Q13)

Type
Articles
Copyright
Copyright © American Association of Wine Economists 2016 

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Footnotes

*

This paper is an extended and updated version of Ashenfelter and Storchmann (2016). We are very grateful to Robert Stavins and Charles Kosltand for suggestions and comments on an earlier draft. We thank Gregory Gambetta for many helpful comments and corrections regarding the scientific part of this paper, and Suzanne Leonard for many improvements in the details of the paper's exposition. We are also indebted to two anonymous referees.

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