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Wine demand in the United Kingdom and new world structural change: a source‐disaggregated analysis

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  • Andrew Muhammad

Abstract

This study examines bottled wine demand in the United Kingdom (UK) by exporting country and assesses the structural adjustment in demand as indicated by the decline in imports since 2004. When comparing the two periods, 1995–2003 and 2005–2009, UK wine imports from Australia became more responsive to changes in aggregate wine expenditures (in real terms) in the latter period. The demand for French wines became more price inelastic in the latter period while the demand for other European wines became price elastic. If the UK government is concerned with decreasing alcohol consumption, an increase in the wine excise tax would lead to a relatively larger decrease in imports from Italy, Portugal, and Spain. The tax on French wines would lead to greater revenue, but a smaller decrease in French wine consumption. [EconLit citations: F14; Q11; Q17]. (C) 2010 Wiley Periodicals, Inc.

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  • Andrew Muhammad, 2011. "Wine demand in the United Kingdom and new world structural change: a source‐disaggregated analysis," Agribusiness, John Wiley & Sons, Ltd., vol. 27(1), pages 82-98, Winter.
    • Handle: RePEc:wly:agribz:v:27:y:2011:i:1:p:82-98
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    File URL: http://hdl.handle.net/10.1002/agr.20250
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    Cited by:

    1. Andrew Muhammad & Amanda M. Countryman, 2019. "In Vino ‘No’ Veritas: impacts of fraud on wine imports in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(4), pages 742-758, October.
    2. Muhammad, Andrew & Leister, Amanda M. & McPhail, Lihong & Chen, Wei, 2014. "The evolution of foreign wine demand in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), July.
    3. Ariel Soto‐Caro & Feng Wu & Tian Xia & Zhengfei Guan, 2023. "Demand analysis with structural changes: Model and application to the US blueberry market," Agribusiness, John Wiley & Sons, Ltd., vol. 39(4), pages 1100-1116, October.
    4. Asche, Frank & Zhang, Dengjun, 2013. "Testing Structural Changes in the U.S. Whitefish Import Market: An Inverse Demand System Approach," Agricultural and Resource Economics Review, Cambridge University Press, vol. 42(3), pages 453-470, December.
    5. Vitor Joao Pereira Domingues Martinho, 2012. "Consumers behavior of Portuguese wine," Papers 1301.2169, arXiv.org.
    6. Morrison, Andrea & Rabellotti, Roberta, 2017. "Gradual catch up and enduring leadership in the global wine industry," Research Policy, Elsevier, vol. 46(2), pages 417-430.

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