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The Impact of Climate Change on the Pattern of Demand for Bottled Water and Non‐Alcoholic Beverages

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  • S. Mirasgedis
  • E. Georgopoulou
  • Y. Sarafidis
  • K. Papagiannaki
  • D. P. Lalas

Abstract

To date, the majority of the research literature on the impacts of climate change has addressed the negative aspect, i.e. the risks associated with a future permanent modification of climate. Potential opportunities have received much less attention and are rarely transformed into monetary values. Furthermore, manufacturing is one of the economic sectors where the influence of climate change remains practically unknown, although the economic performance of some industrial activities depends directly on climatic conditions – bottled water and non‐alcoholic beverages (i.e. soft drinks and fruit juices) are among these. This paper aims to explore the link between weather and product sales in these sectors, and estimate in quantitative terms the potential impact of future climate change on their revenues. Historic data were explored through statistical analysis and appropriate regression models were developed. Models were applied for the historic (1961–90) and future climate (2021–50) and the difference in sales forms the expected quantified impact of climate change. The results indicate that significant opportunities may arise for some sectors from modifications in climate, provided their production infrastructure can meet the expected demand and their management strategies can successfully adapt to altered climatic conditions. Copyright © 2013 John Wiley & Sons, Ltd and ERP Environment.

Suggested Citation

  • S. Mirasgedis & E. Georgopoulou & Y. Sarafidis & K. Papagiannaki & D. P. Lalas, 2014. "The Impact of Climate Change on the Pattern of Demand for Bottled Water and Non‐Alcoholic Beverages," Business Strategy and the Environment, Wiley Blackwell, vol. 23(4), pages 272-288, May.
    • Handle: RePEc:bla:bstrat:v:23:y:2014:i:4:p:272-288
    DOI: 10.1002/bse.1782
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    References listed on IDEAS

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    1. Monika Winn & Manfred Kirchgeorg & Andrew Griffiths & Martina K. Linnenluecke & Elmar Günther, 2011. "Impacts from climate change on organizations: a conceptual foundation," Business Strategy and the Environment, Wiley Blackwell, vol. 20(3), pages 157-173, March.
    2. Ramanathan, Usha & Muyldermans, Luc, 2010. "Identifying demand factors for promotional planning and forecasting: A case of a soft drink company in the UK," International Journal of Production Economics, Elsevier, vol. 128(2), pages 538-545, December.
    3. Murray, Kyle B. & Di Muro, Fabrizio & Finn, Adam & Popkowski Leszczyc, Peter, 2010. "The effect of weather on consumer spending," Journal of Retailing and Consumer Services, Elsevier, vol. 17(6), pages 512-520.
    4. Jiang, Yingni, 2010. "Generation of typical meteorological year for different climates of China," Energy, Elsevier, vol. 35(5), pages 1946-1953.
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    4. Arunraj, Nari Sivanandam & Ahrens, Diane, 2015. "A hybrid seasonal autoregressive integrated moving average and quantile regression for daily food sales forecasting," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 321-335.

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