The Value of Terroir: Hedonic Estimation of Vineyard Sale Prices

17 Pages Posted: 7 Feb 2011

See all articles by Robin M Cross

Robin M Cross

Applied Economics

Andrew Plantinga

Oregon State University

Robert N. Stavins

Harvard University - Harvard Kennedy School (HKS); Resources for the Future; National Bureau of Economic Research (NBER)

Multiple version iconThere are 3 versions of this paper

Date Written: February 2011

Abstract

We examine the value of terroir, which refers to the special characteristics of a place that impart unique qualities to the wine produced. We do this by conducting a hedonic analysis of vineyard sales in the Willamette Valley of Oregon to ascertain whether site attributes, such as slope, aspect, elevation, and soil types, or designated appellations are more important determinants of price. We find that prices are strongly determined by sub-AVA appellation designations, but not by specific site attributes. These results indicate that the concept of terroir matters economically, although the reality of terroir - as proxied for by locational attributes - is not significant.

Suggested Citation

Cross, Robin M and Plantinga, Andrew J. and Stavins, Robert N., The Value of Terroir: Hedonic Estimation of Vineyard Sale Prices (February 2011). NBER Working Paper No. w16762. Available at SSRN: https://ssrn.com/abstract=1754914

Robin M Cross (Contact Author)

Applied Economics ( email )

221B Ballard Hall
Corvallis, OR OR 97331
United States

Andrew J. Plantinga

Oregon State University ( email )

232B Ballard Extension Hall
Corvallis, OR 97331-4501
United States

Robert N. Stavins

Harvard University - Harvard Kennedy School (HKS) ( email )

79 John F. Kennedy Street
Cambridge, MA 02138
United States
617-495-1820 (Phone)
617-496-3783 (Fax)

Resources for the Future

1616 P Street, NW
Washington, DC 20036
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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