Working Paper: NBER ID: w16762
Authors: Robin Cross; Andrew J. Plantinga; Robert N. Stavins
Abstract: We examine the value of terroir, which refers to the special characteristics of a place that impart unique qualities to the wine produced. We do this by conducting a hedonic analysis of vineyard sales in the Willamette Valley of Oregon to ascertain whether site attributes, such as slope, aspect, elevation, and soil types, or designated appellations are more important determinants of price. We find that prices are strongly determined by sub-AVA appellation designations, but not by specific site attributes. These results indicate that the concept of terroir matters economically, although the reality of terroir - as proxied for by locational attributes - is not significant.
Keywords: terroir; hedonic analysis; vineyard prices; appellation designations
JEL Codes: C2; Q11
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| terroir (Q15) | vineyard prices (Q15) |
| consumer perception (D18) | vineyard prices (Q15) |
| information asymmetry (D82) | vineyard prices (Q15) |
| subava designations (Y91) | vineyard prices (Q15) |
| site attributes (Y91) | vineyard prices (Q15) |