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The economics of planting rights in wine production

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  • Koen Deconinck
  • Johan Swinnen

Abstract

The European Union (EU) is the world's largest wine producer, as well as the world's most regulated wine market. In 2007, the EU decided on a major reform of its wine policy. A crucial element was the abolishment of a system of planting rights to limit the planting of vineyards. However, after intense lobbying by opponents of the liberalisation, this decision was reversed in 2013. Despite the importance of planting rights in European (and hence global) wine production, and despite the fierce debates surrounding the reforms, no model exists to study the effects of this policy. We develop the first theoretical model of planting rights, integrating the markets for land, planting rights and wine to analyse efficiency and distributional effects. We use the model to study the effects of differences among EU member states in restrictions on trade in planting rights, the role of government reserves and the impact of imperfect enforcement.

Suggested Citation

  • Koen Deconinck & Johan Swinnen, 2015. "The economics of planting rights in wine production," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 42(3), pages 419-440.
    • Handle: RePEc:oup:erevae:v:42:y:2015:i:3:p:419-440.
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    File URL: http://hdl.handle.net/10.1093/erae/jbu028
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    Cited by:

    1. Rickard, Brad & Gergaud, Olivier & Hu, Wenjing, 2014. "Trade liberalization in the presence of domestic regulations: Impacts of the proposed EU-U.S. free trade agreement on wine markets," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170462, Agricultural and Applied Economics Association.
    2. Julian M. Alston & Davide Gaeta, 2021. "Reflections on the Political Economy of European Wine Appellations," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 7(2), pages 219-258, July.
    3. Paola Corsinovi & Davide Gaeta, 2017. "European Wine Policies and their consequences on the global wine trade," Economia agro-alimentare, FrancoAngeli Editore, vol. 19(1), pages 59-88.
    4. Christian A. Cancino & Jorge J. Román & José L. Gallizo, 2017. "Exploring features and opportunities of rapid-growth wine firms in Chile," Estudios Gerenciales, Universidad Icesi, vol. 33(143), pages 115-123, June.
    5. Boysen, Ole & Ferrari, Emanuele & Nechifor, Victor & Tillie, Pascal, 2023. "Earn a living? What the Côte d’Ivoire–Ghana cocoa living income differential might deliver on its promise," Food Policy, Elsevier, vol. 114(C).

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