The Value of Terroir: Hedonic Estimation of Vineyard Sale Prices

20 Pages Posted: 16 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)

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Date Written: February 15, 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.

Keywords: Wine, Vineyard, Hedonic Price Analysis

JEL Classification: C2, Q11

Suggested Citation

Cross, Robin M and Plantinga, Andrew J. and Stavins, Robert N., The Value of Terroir: Hedonic Estimation of Vineyard Sale Prices (February 15, 2011). FEEM Working Paper No. 12.2011, Available at SSRN: https://ssrn.com/abstract=1761982 or http://dx.doi.org/10.2139/ssrn.1761982

Robin M Cross

Applied Economics ( email )

221B Ballard Hall
Corvallis, OR OR 97331
United States

Andrew J. Plantinga (Contact Author)

Oregon State University ( email )

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

Robert N. Stavins

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

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Cambridge, MA 02138
United States
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617-496-3783 (Fax)

Resources for the Future

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National Bureau of Economic Research (NBER) ( email )

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