Does Organic Wine Taste Better? An Analysis of Experts’ Ratings

34 Pages Posted: 7 Jan 2016

See all articles by Magali A. Delmas

Magali A. Delmas

University of California, Los Angeles (UCLA)

Olivier Gergaud

Kedge - Bordeaux Business School

Jinghui Lim

University of California, Los Angeles (UCLA)

Date Written: January 6, 2016

Abstract

Eco-labels are part of a new wave of environmental policy that emphasizes information disclosure as a tool to induce environmentally friendly behavior by both firms and consumers. Little consensus exists as to whether eco-certified products are actually better than their conventional counterparts. This paper seeks to understand the link between eco-certification and product quality. We use data from three leading wine rating publications (Wine Advocate, Wine Enthusiast, and Wine Spectator) to assess quality for 74,148 wines produced in California between 1998 and 2009. Our results indicate that eco-certification is associated with a statistically significant increase in wine quality rating.

Keywords: eco-labels, credence goods, information disclosure policy, asymmetric information, product quality

JEL Classification: Q56, Q13, L15, L66, Q21

Suggested Citation

Delmas, Magali A. and Gergaud, Olivier and Lim, Jinghui, Does Organic Wine Taste Better? An Analysis of Experts’ Ratings (January 6, 2016). Available at SSRN: https://ssrn.com/abstract=2711839 or http://dx.doi.org/10.2139/ssrn.2711839

Magali A. Delmas (Contact Author)

University of California, Los Angeles (UCLA) ( email )

405 Hilgard Avenue
Box 951361
Los Angeles, CA 90095
United States

Olivier Gergaud

Kedge - Bordeaux Business School ( email )

Domaine de Luminy - BP 921
BP 921
Marseille, PACA 13288
France

Jinghui Lim

University of California, Los Angeles (UCLA) ( email )

405 Hilgard Avenue
Box 951361
Los Angeles, CA 90095
United States

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