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ORANI-WINE: Tax Issues and the Australian Wine Industry

Author

Listed:
  • Meagher, G.A.
  • Parmenter, B.R.
  • Rimmer, R.J.
  • Clements, Kenneth W.

Abstract

In this paper the construction and application of ORANI-WINE is described. This is a special-purpose version of ORANI specifically designed for analysing policy questions bearing upon the alcoholic beverages sector of the Australian economy and on associated agricultural activities, especially viticulture. Details of the modifications made to ORANI are provided, and projections from ORANI-WINE of the effects of the imposition of a specific tax on domestically produced wine, equivalent to that on beer and malt in the base period, are reported. The approximately 58 per cent increase in the purchasers' price of wine induces a 16 per cent reduction in wine output, a two per cent increase in spirit production, but little effect on beer and malt output. Grape industry output is reduced nine per cent. The projections also emphasise mild inflationary effects on the economy, which impinge most severely on the export sectors (agriculture and mining). Rural employment falls two per cent.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:remaae:12490
    DOI: 10.22004/ag.econ.12490
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    References listed on IDEAS

    as
    1. Clements, Kenneth W & Johnson, Lester W, 1983. "The Demand for Beer, Wine, and Spirits: A Systemwide Analysis," The Journal of Business, University of Chicago Press, vol. 56(3), pages 273-304, July.
    2. B. R. Parmenter & G. A. Meagher, 1985. "Policy Analysis Using a Computable General Equilibrium Model: A Review of Experience at the IMPACT Project," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 18(1), pages 3-15, March.
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    Cited by:

    1. 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.
    2. K.W. Clements, 1993. "The Economics of Drinking and Smoking," Economics Discussion / Working Papers 93-13, The University of Western Australia, Department of Economics.
    3. Milham, Nick & Davenport, Scott V. & Penm, Jammie H., 1990. "Substitution Relationships in Australian Beverage Consumption," 1990 Conference (34th), February 13-15, 1990, Brisbane, Australia 145336, Australian Agricultural and Resource Economics Society.
    4. Wittwer, Glyn & Rothfield, Jeremy, 2005. "Projecting the world wine market from 2003 to 2010," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 13.
    5. Clements, Kenneth W. & Mariano, Marc Jim M. & Verikios, George & Wong, Berwyn, 2022. "How elastic is alcohol consumption?," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 568-581.

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