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Price Premiums and Discounts for Australian Sparkling Wines

Author

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  • Oczkowski Edward

    (National Wine and Grape Industry Centre, School of Accounting and Finance, Charles Sturt University, PO Box 588, Wagga Wagga, NSW, 2678, Australia)

Abstract

This paper assesses the price premiums and discounts for nine sparkling wine types or names commonly employed in Australia. Hedonic wine price functions are estimated for 10 years of wine releases to identify the specific price impact of different sparkling wine types or names, after controlling for other wine price determining factors. Results identify that important price premiums occur with the use of blanc de blancs and other less common sparkling reds. An important price discount is estimated for prosecco wines. Sparkling wine type interactions with climatic regional conditions and cellaring potential also point to some interesting results. The estimates may have potentially important implications for the strategic use of wine types and names by producers and for consumers in identifying good valued sparkling wines.

Suggested Citation

  • Oczkowski Edward, 2022. "Price Premiums and Discounts for Australian Sparkling Wines," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 20(1), pages 25-38, May.
    • Handle: RePEc:bpj:bjafio:v:20:y:2022:i:1:p:25-38:n:6
    DOI: 10.1515/jafio-2020-0027
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    References listed on IDEAS

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    More about this item

    Keywords

    wine prices; sparkling wines; Australian wines;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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